Key Highlights
- The FBI seized domains and servers linked to E-Note, an alleged crypto laundering service.
- Authorities traced over $70M in illicit funds tied to ransomware and cybercrime.
- The case follows recent $42M crypto fraud charges, signaling tighter enforcement.
Just days after a string of high-profile crypto fraud cases, U.S. authorities have moved again, this time targeting the plumbing behind cybercrime.
The Federal Bureau of Investigation (FBI), working with international partners, announced the takedown of E-Note, a virtual money laundering service accused of helping cybercriminal groups move and cash out illicit cryptocurrency. Prosecutors say the platform played a key role in laundering funds tied to ransomware attacks, account takeovers, and other crimes that hit U.S. healthcare systems and critical infrastructure.
FBI dismantles E-Note’s infrastructure
According to the U.S. Attorney’s Office for the Eastern District of Michigan, investigators traced more than $70 million in illegal proceeds through E-Note’s network since 2017. The service allegedly offered conversion and cash-out options that allowed criminals to move crypto across borders and into traditional currencies.
As part of the operation, law enforcement seized servers, mobile applications, and several domains, including e-note.com, e-note.ws, and jabb.mn. Authorities also obtained historical copies of E-Note’s servers, giving them access to customer records and transaction data that could support further investigations.
Russian national charged with laundering conspiracy
Prosecutors unsealed an indictment against Mykhalio Petrovich Chudnovets, a 39-year-old Russian national accused of running the laundering operation. Court filings allege he began offering money laundering services to cybercriminals as early as 2010 and later operated E-Note as a dedicated payment processor for illegal activity.
Chudnovets is charged with conspiracy to launder monetary instruments, an offense carrying a maximum sentence of 20 years in prison. U.S. officials say the case is still under active investigation.
Global coordination behind the takedown
The operation involved the FBI’s Detroit Cyber Task Force, Michigan State Police, and international partners, including Germany’s Federal Criminal Police Office and Finland’s National Bureau of Investigation. The action was a coordinated strike against cross-border crypto crime rather than a single takedown, similar to recent efforts targeting crypto-stealing botnets.
A seizure notice now displayed on the confiscated domains cites U.S. money laundering statutes and confirms the action was authorized by a federal court in Michigan.
Enforcement pressure extends beyond laundering
The E-Note case follows another major enforcement action. Earlier this month, U.S. prosecutors charged a 26-year-old Canadian citizen, Nathan Gauvin, in a $42 million crypto-linked investment fraud that played out across Discord communities.
In that case, authorities allege Gauvin used fake performance data and doctored documents to lure investors, then diverted funds for personal spending. The SEC filed parallel charges, accusing him of obstructing an active investigation while continuing to submit false records.
While much of crypto now operates under increasing regulation, authorities are focusing on the less visible layers, laundering services, cash-out networks, and platforms that enable crime behind the scenes.
For law enforcement, the target is no longer just scammers or hackers. It’s the infrastructure that keeps illicit crypto moving.
Also read: Florida Seizes $1.5M in Crypto from Chinese National in Fraud Case
