$70M Laundering Scheme: FBI Takes Down Crypto Exchange Tied to Ransomware

The U.S. government has intensified its crackdown on crypto-enabled crime with the takedown of a cryptocurrency exchange allegedly used to launder more than $70 million from ransomware attacks. 

On December 18, 2025, U.S. prosecutors confirmed that the FBI seized the infrastructure of a virtual currency service known as E-Note, accusing it of facilitating large-scale money laundering for cybercriminals since 2017.

This enforcement action underscores growing pressure on illicit crypto platforms and highlights how ransomware groups continue exploiting digital assets to move funds across borders.

FBI Seizes Crypto Exchange Linked to Ransomware Laundering

According to the U.S. Attorney’s Office for the Eastern District of Michigan, the FBI—working alongside Michigan State Police and international law enforcement partners—seized E-Note’s servers, websites, and mobile applications. 

Authorities allege the exchange served as a laundering hub for proceeds from ransomware attacks, account takeovers, and other cyber-enabled crimes.

Prosecutors claim that more than $70 million in illicit cryptocurrency passed through E-Note’s infrastructure over several years, making it one of the most significant crypto exchange seizure cases tied to ransomware laundering to date.

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Who Is Behind the $70M Ransomware Crypto Exchange?

U.S. authorities unsealed an indictment against Mykhalio Petrovich Chudnovets, a 39-year-old Russian national accused of operating E-Note. 

Chudnovets faces charges of conspiracy to launder monetary instruments, an offense that carries a maximum penalty of 20 years in prison.

Court documents allege that Chudnovets began offering laundering services as early as 2010, initially using individual “money mules.” 

Around 2017, prosecutors say he formalized the operation into an online service—E-Note—allowing cybercriminals to convert cryptocurrency into fiat currency and move funds internationally.

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How E-Note Allegedly Laundered Crypto From Ransomware Attacks

Prosecutors describe E-Note as a low-profile virtual currency service designed to avoid scrutiny while providing efficient laundering tools. The platform allegedly:

• Converted crypto ransom payments into fiat currencies
• Used a network of money mules to obscure transaction trails
• Facilitated cross-border fund transfers for ransomware groups
• Served cybercriminal organizations targeting healthcare systems and critical infrastructure

Investigators seized historical server data, including customer databases and transaction records, which are expected to support additional investigations and prosecutions related to ransomware laundering crypto networks.

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Why This FBI Crypto Exchange Seizure Matters

This case represents a broader FBI crackdown on cryptocurrency exchanges used for laundering ransomware proceeds. 

Unlike high-profile centralized exchanges, E-Note reportedly operated with minimal public visibility, illustrating how illicit actors increasingly rely on shadow services rather than mainstream platforms.

The takedown sends a clear message: crypto exchanges—licensed or not—can face seizure if they knowingly facilitate criminal activity. It also reinforces the role of international cooperation, as digital asset crime often crosses jurisdictions.

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Part of a Larger U.S. Crypto Crime Crackdown

The E-Note seizure comes amid escalating enforcement actions across the United States. Recent cases include:

• Seizure of millions in crypto tied to investment scams
• Indictments related to state-sponsored cyberattack groups
• Guilty pleas in large-scale Bitcoin theft rings

Despite enforcement efforts, crypto crime remains a serious issue. Industry reports estimate billions of dollars in cryptocurrency stolen annually, with ransomware and state-linked hacking groups among the most active perpetrators.

Read Also: Quadriga Crypto Scam: The CEO Who Took the Keys to His Grave

Implications for Crypto Exchanges and Users

For legitimate crypto businesses, this case reinforces the importance of robust compliance, AML controls, and transaction monitoring. For users, it highlights the risks of using obscure or unregulated exchanges that may suddenly be seized by authorities.

As regulators increase pressure, the line between decentralized innovation and criminal misuse continues to be a key battleground for the crypto industry.

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FAQ

What crypto exchange did the FBI seize in the $70M laundering case?

The FBI seized the virtual currency service known as E-Note, alleging it laundered ransomware proceeds.

How much crypto was allegedly laundered through E-Note?

Authorities estimate more than $70 million in illicit cryptocurrency passed through the platform.

Who is charged in connection with the ransomware crypto exchange?

U.S. prosecutors charged Russian national Mykhalio Petrovich Chudnovets with conspiracy to launder money.

Why are crypto exchanges targeted in ransomware investigations?

Ransomware groups rely on exchanges to convert crypto into fiat and move funds across borders.

Does this mean all crypto exchanges are at risk of seizure?

No, but exchanges that facilitate or ignore illicit activity face significant legal and regulatory risk.