US Authorities Dismantle Alleged Crypto Laundering Hub

Federal authorities disrupt a long-running online service accused of facilitating illicit digital payments.

Coordinated action against alleged crypto laundering infrastructure

Federal prosecutors say they have disrupted an online platform that allegedly helped cybercriminal groups conceal and transfer large volumes of digital proceeds. The US Attorney’s Office for the Eastern District of Michigan, in partnership with state and international agencies, disabled technical systems tied to a service known as E-Note, according to the US Department of Justice.

The platform is described as a cryptocurrency exchange and payment processor that helped move illicit funds for years. Alongside the announcement, officials unsealed charges against Russian national Mykhalio Petrovich Chudnovets, who is accused of designing and managing the service. He is charged with a single count of conspiracy to commit money laundering. Officials did not say whether the defendant is in custody and provided no arrest details.

Alleged evolution into a scalable criminal service

Chudnovets is suspected to have initially operated E-Note as an informal laundering channel before turning it into a more sophisticated, web-based system, the investigators said. According to court filings, the service followed a pattern seen in other cybercrime operations: small, person-to-person arrangements gradually transformed into automated marketplaces that enable rapid, cross-border fund transfers while masking the origins of the money.

Prosecutors say the platform functioned for over a decade, moving funds for criminals engaged in ransomware deployments and online fraud. Authorities believe the platform became a dependable mechanism for organizations seeking to obscure digital financial trails.

Millions in suspected proceeds identified

The FBI reported tracing over $70 million in illicit transactions through E-Note and related money-mule channels since 2017. These transfers allegedly included payments extorted from US healthcare organizations and critical infrastructure operators.

Officials said investigators obtained server images containing customer records and transaction logs, potentially offering insights into networks of users and intermediaries that relied on the service.

Servers and domains seized

As part of the takedown, law enforcement seized servers and online assets linked to the operation, including multiple domains and mobile applications.

The DoJ highlighted support from German and Finnish authorities, as well as the Michigan State Police and its Cyber Command Center. The charged offense carries a statutory maximum of 20 years in prison.