FBI DISRUPTS VIRTUAL MONEY LAUNDERING SERVICE USED TO FACILITATE CRIMINAL ACTIVITY

DETROIT - The United States Attorney’s Office for the Eastern District of Michigan announced today a coordinated action with international partners and the Michigan State Police to disrupt and take down the online infrastructure used to operate E-Note, a cryptocurrency exchange that allegedly facilitated money laundering by transnational cyber-criminal organizations, including those targeting U.S. healthcare and critical infrastructure. Since 2017, the FBI identified more than $70,000,000 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.

In conjunction with the operation, the U.S. Attorney’s Office also announced the unsealing of an indictment in the Eastern District of Michigan against Mykhalio Petrovich Chudnovets, 39, a Russian national, which charges him with one count of money laundering conspiracy.

According to court documents, Chudnovets began offering money laundering services to cyber criminals in 2010. Until this seizure by law enforcement, Chudnovets offered money laundering services via the E-Note payment processing service, which he controlled and operated. Chudnovets worked with financially motivated cyber criminals to transfer criminal proceeds across international borders and to convert those proceeds from cryptocurrency into various cash currencies.

As part of the coordinated actions, U.S. and international law enforcement seized servers hosting Chudnovets’ operations, mobile applications, and the websites “e-note.com,” “e-note.ws,” and “jabb.mn.” U.S. law enforcement separately obtained earlier copies of Chudnovets’ servers, including customer databases and transaction records.

Chudnovets is charged with one count of conspiracy to launder monetary instruments which carries a maximum penalty of 20 years in prison.

United States Attorney Jerome F. Gorgon, Jr. and Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Division, made the announcement.

The FBI Detroit Cyber Task Force is investigating the case.

Assistant U.S. Attorney Timothy Wyse is prosecuting this case.

The Justice Department also recognizes the critical cooperation of the German Federal Criminal Police Office, the Finnish National Bureau of Investigation, and Michigan State Police Michigan Cyber Command Center (MC3).

Any individual who believes he/she is a victim whose funds were laundered through Chudnovets should reach out to law enforcement via email address e-note-information@fbi.gov.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.