DETROIT — Federal prosecutors in Michigan, working alongside international partners and state authorities, have dismantled an online cryptocurrency operation they say functioned as a financial clearinghouse for cybercriminals tied to ransomware, account takeovers, and attacks on critical infrastructure.
The United States Attorney’s Office for the Eastern District of Michigan announced a coordinated takedown targeting E-Note, an online payment service authorities allege was designed to launder illicit proceeds for transnational cybercrime groups. Investigators say the platform moved more than $70 million in illegal funds since 2017, including ransom payments extracted from U.S. healthcare systems and other critical sectors.
According to federal investigators, the service was controlled by Mykhalio Petrovich Chudnovets, a 39-year-old Russian national now charged in a newly unsealed indictment in Detroit with conspiracy to launder monetary instruments — a charge carrying a potential 20-year federal prison sentence.
Alleged Long-Running Laundering Operation
Court documents allege Chudnovets began offering money-laundering services as early as 2010, positioning himself as a go-to “cash-out” provider for financially motivated cybercriminals. Prosecutors say he used E-Note to move criminal proceeds across borders and convert cryptocurrency into various fiat currencies using a network of money mules.
Until law enforcement intervention, authorities allege Chudnovets controlled and operated E-Note as a purpose-built laundering platform rather than a legitimate exchange.
Infrastructure Seized
As part of the operation, U.S. and international authorities seized:
- Servers hosting E-Note’s backend operations
- Mobile applications linked to the service
- The websites e-note.com, e-note.ws, and jabb.mn
Investigators also obtained earlier server backups, including customer databases and transaction records, which are expected to play a central role in the ongoing investigation.
Agencies Involved
The case is being investigated by the Federal Bureau of Investigation Detroit Cyber Task Force, with assistance from international and state partners, including:
- German Federal Criminal Police Office
- Finnish National Bureau of Investigation
- Michigan State Police
- Michigan Cyber Command Center (MC3)
The announcement was made by Jerome F. Gorgon Jr., U.S. Attorney for the Eastern District of Michigan, and Jennifer Runyan, Special Agent in Charge of the FBI’s Detroit Division. The case is being prosecuted by Assistant U.S. Attorney Timothy Wyse.
Victim Outreach
Federal authorities are urging anyone who believes their funds were laundered through the E-Note service to contact law enforcement directly at e-note-information@fbi.gov.
As always, prosecutors emphasize that an indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in federal court.
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- NMD Staff
News@NewMediaDetroit.com