By PAUL O’DONOGHUE, Senior Correspondent
U.S. and European law enforcement agencies have seized servers and domains linked to E-Note, an unlicensed crypto exchange which allegedly laundered over $70 million for cybercriminal groups.
Investigators believe ransomware attacks and account takeovers generated much of the illicit funds. Operators then routed the money through an international network of so-called money mules to hide its origin.
The U.S. Attorney’s Office said. “Since 2017, the FBI identified more than $70 million of illicit proceeds of ransomware attacks and account takeovers transferred via E-Note payment service and money mule network, including laundered funds stolen or extorted from U.S. victims.”
The FBI led the operation with support from U.S. and European agencies. These included the Department of Justice, Michigan State Police, Finnish investigators and German police.
Authorities seized several domains, including e-note.com, e-note.ws and jabb.mn. They also disabled mobile applications linked to the service.
Agents took control of servers hosting the platform and its apps. The U.S. Attorney’s Office added: “U.S. law enforcement separately obtained earlier copies of Chudnovets’ servers, including customer databases and transaction records.”
Prosecutors in the Eastern District of Michigan also unsealed an indictment against Mykhalio Petrovich Chudnovets, the alleged operator of the site. The 39-year-old Russian national faces one count of conspiracy to launder monetary instruments.
According to court documents, Chudnovets controlled and operated E-Note. Prosecutors allege he offered money-laundering services to cybercriminals.
They said he began providing those services in 2010. The work included moving funds across borders and converting cryptocurrency into fiat currency.
Authorities have not announced any arrests. If convicted, Chudnovets faces up to 20 years in prison.
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