U.S. Prosecutors Disrupt E-Note Crypto Laundering Service Linked to $70 Million in Cybercrime

• E-Note enabled cybercriminals to transfer ransomware proceeds and convert cryptocurrency to fiat currencies across borders.

• The service operated discreetly since 2017, using money mules and online platforms to facilitate international illicit transactions.

• Authorities seized servers, apps, and domains, identifying $70 million in laundered funds from over 3,200 monthly crypto fraud complaints reported by the FBI.

E-Note cryptocurrency laundering service disrupted by U.S. prosecutors: $70M+ in cybercrime funds seized. Learn how this takedown impacts crypto security and global enforcement. Stay informed on crypto crime trends today.

What is the E-Note Cryptocurrency Laundering Service?

The E-Note cryptocurrency laundering service was an online platform allegedly operated by a Russian national to help cybercriminals clean illicit proceeds from ransomware, account takeovers, and other cyber-enabled crimes. Since 2017, it has facilitated the movement of more than $70 million across international borders, converting virtual currencies into fiat money through a network of money mules. Federal prosecutors in Michigan unsealed charges against its operator on December 17, 2025, marking a significant blow to transnational cybercrime networks.

How Did U.S. Authorities Disrupt the E-Note Operation?

Federal prosecutors in the Eastern District of Michigan collaborated with the FBI, Michigan State Police, and international law enforcement to dismantle E-Note. They seized the service’s online infrastructure, including servers, mobile applications, and domains such as e-note.com, e-note.ws, and jabb.mn. Court documents reveal that investigators obtained archived copies of customer databases and transaction records, which will support further probes into related criminal activities. The operation targeted networks involved in attacks on U.S. healthcare systems and critical infrastructure, underscoring the growing focus on crypto-enabled money laundering.

According to the U.S. Attorney’s Office for the Eastern District of Michigan, the indictment accuses Mykhalio Petrovich Chudnovets, 39, of running E-Note and conspiring to launder monetary instruments, facing up to 20 years in prison. The service evolved from individual money mule operations starting around 2010 into a formalized online business by 2017. Blockchain forensics experts, including those from Chainalysis, have noted that such low-profile services pose unique challenges in detection, as E-Note maintained minimal public visibility.

The platform, possibly linked to E Note International FZ-LLC in the United Arab Emirates based on archived website data, allowed users to transfer funds discreetly. Prosecutors allege Chudnovets worked directly with financially motivated cybercriminals, enabling conversions from cryptocurrency to various fiat currencies. This disruption highlights the effectiveness of coordinated international efforts in tracing blockchain transactions, with the FBI identifying specific illicit flows exceeding $70 million since the service’s inception.

Frequently Asked Questions

What Charges Does the Operator of the E-Note Cryptocurrency Laundering Service Face?

Mykhalio Petrovych Chudnovets faces one count of conspiracy to launder monetary instruments, stemming from his alleged operation of E-Note since 2017. The charges detail his role in transferring over $70 million in cybercrime proceeds, including ransomware payments, with penalties up to 20 years in prison if convicted. This case is part of broader U.S. efforts to combat crypto-related financial crimes.

How Has Crypto Crime Evolved in Relation to Services Like E-Note?

Crypto crime has surged, with Chainalysis reporting $3.4 billion stolen in cryptocurrency this year alone, much of it linked to state-sponsored actors like North Korea, accounting for 59% of losses. The FBI’s Internet Crime Complaint Center noted around 3,200 monthly complaints for cryptocurrency investment fraud earlier in 2025. Services like E-Note have enabled rapid cross-border movement of these funds, but increasing law enforcement actions, such as this takedown, are disrupting such networks and enhancing blockchain tracing capabilities.

Key Takeaways

• U.S. Law Enforcement Success: The disruption of E-Note demonstrates effective collaboration between federal agencies and international partners, seizing key infrastructure to halt $70 million in laundering.
• Rising Crypto Crime Trends: With $3.4 billion stolen in 2025 per Chainalysis data, services like E-Note highlight vulnerabilities in converting illicit crypto to fiat, affecting healthcare and infrastructure sectors.
• Implications for Global Security: This case urges stronger blockchain monitoring and regulatory measures to prevent future operations, encouraging users to adopt secure practices and report suspicious activities promptly.

Conclusion

The disruption of the E-Note cryptocurrency laundering service represents a pivotal victory in the fight against cyber-enabled financial crimes, with U.S. prosecutors successfully targeting over $70 million in illicit funds since 2017. By seizing critical infrastructure and charging its operator, authorities have weakened transnational networks preying on vulnerable sectors like healthcare. As crypto adoption grows, ongoing international cooperation and advanced forensics will be essential to deter similar operations, ensuring a safer digital economy for all stakeholders.

FBI DISRUPTS VIRTUAL MONEY LAUNDERING SERVICE USED TO FACILITATE CRIMINAL ACTIVITY pic.twitter.com/IUtABVkjfu
— U.S. Attorney EDMI (@USAO_MIE) December 17, 2025