Law Enforcement Seizes Cryptocurrency Exchange E-Note Servers and Domains

An international law enforcement operation seized servers and domains belonging to cryptocurrency exchange E-Note. U.S. authorities accuse the platform of laundering over $70 million obtained through ransomware attacks and account compromises.

The Investigation

Per the FBI, more than $70 million in illicit funds passed through E-Note and its associated money mule network since 2017. The funds include ransom payments and stolen money from American victims targeted in ransomware attacks and account takeovers.

The operation involved the U.S. Department of Justice, FBI, Michigan State Police, Finland's National Bureau of Investigation, and German police.

Seizures

Law enforcement confiscated the domains e-note[.]com, e-note[.]ws, and jabb[.]mn, blocked related mobile applications, and seized the platform's servers along with customer databases and transaction records.

Charges Filed

The U.S. Attorney's Office filed charges against 39-year-old Russian citizen Mikhail Petrovich Chudnovets, identified as E-Note's operator. He faces conspiracy to commit money laundering charges carrying up to 20 years in prison if convicted. No arrests have been reported.

The Department of Justice states Chudnovets has provided money laundering services to cybercriminals since 2010, facilitating international money transfers and cryptocurrency-to-fiat conversions.

The seized customer databases and transaction records could help identify additional E-Note users, potentially leading to further enforcement actions.