HashFlare
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According to Cointelegraph, the co-founders of the cryptocurrency mining service HashFlare have agreed to plead guilty to a single count of conspiracy to commit wire fraud. This decision comes as part of a plea agreement with U.S. authorities. During hearings on February 12 in the U.S. District Court for the Western District of Washington, Sergei Potapenko and Ivan Turogin admitted guilt to one felony charge out of the 18 they faced from U.S. prosecutors. The Estonian nationals were accused of operating HashFlare as a Ponzi scheme, defrauding users of more than $550 million between 2015 and 2019. Additionally, they raised $25 million from investors in 2017 with promises to establish a digital bank named Polybius, which was never created.
Reed Smith partner and defense counsel Mark Bini, speaking to Cointelegraph after the hearings, stated that both defendants have "agreed to forfeit their interests in assets that the Government froze in 2022" and will provide assistance to ensure "zero financial harm to anyone." According to Bini, Potapenko, Turogin, and HashFlare returned $350 million in cryptocurrency payments to users between 2015 and 2022. HashFlare ceased operations in 2019, and Estonian authorities arrested Potapenko and Turogin in 2022 as part of the 18-count indictment. Following legal challenges, they were extradited to the United States in May 2024. Both have been free on bail since July 2024 but could face up to 20 years in prison each after a sentencing hearing scheduled for May 8.
This case remains under development, and further updates will be provided as new information becomes available.
#CryptoScandal #HashFlare #BitcoinFraud #CryptoNews #ponzischeme
Reed Smith partner and defense counsel Mark Bini, speaking to Cointelegraph after the hearings, stated that both defendants have "agreed to forfeit their interests in assets that the Government froze in 2022" and will provide assistance to ensure "zero financial harm to anyone." According to Bini, Potapenko, Turogin, and HashFlare returned $350 million in cryptocurrency payments to users between 2015 and 2022. HashFlare ceased operations in 2019, and Estonian authorities arrested Potapenko and Turogin in 2022 as part of the 18-count indictment. Following legal challenges, they were extradited to the United States in May 2024. Both have been free on bail since July 2024 but could face up to 20 years in prison each after a sentencing hearing scheduled for May 8.
This case remains under development, and further updates will be provided as new information becomes available.
#CryptoScandal #HashFlare #BitcoinFraud #CryptoNews #ponzischeme
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Deported by the U.S. despite not yet being tried? The HashFlare founding couple entangled in an unbelievable legal dispute
The two Estonian co-founders of the cryptocurrency mining platform HashFlare – Sergei Potapenko and Ivan Turõgin – are facing a bizarre legal situation in the U.S.: the Department of Homeland Security (DHS) has demanded they leave the country immediately, while the court is still requiring them to remain in Washington to await sentencing.
DHS 'nudges' despite the court not allowing them to leave
On April 6, both Potapenko and Turõgin received an email from #DHS with a brief but coercive message: “It’s time to leave the United States.” They were warned they would face “enforcement actions by law enforcement,” including criminal prosecution, civil penalties, and other serious consequences if they do not leave U.S. territory.
DHS 'nudges' despite the court not allowing them to leave
On April 6, both Potapenko and Turõgin received an email from #DHS with a brief but coercive message: “It’s time to leave the United States.” They were warned they would face “enforcement actions by law enforcement,” including criminal prosecution, civil penalties, and other serious consequences if they do not leave U.S. territory.
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HashFlare Scam $577 Million: Two Estonians Plead Guilty, Facing 20 Years in Prison
Two Estonian citizens, Sergei Potapenko and Ivan Turõgin, have pleaded guilty to defrauding $577 million in the HashFlare Ponzi scheme, promising cryptocurrency mining but actually lacking the computing power to deliver as promised.
Sophisticated Crypto Investment Scam
#HashFlare advertised as a cloud cryptocurrency mining service, attracting over $577 million from investors from 2015 to 2019.
In reality, the company did not have enough mining equipment, used fake data to create the illusion of phantom profits, and defrauded investors.
Sophisticated Crypto Investment Scam
#HashFlare advertised as a cloud cryptocurrency mining service, attracting over $577 million from investors from 2015 to 2019.
In reality, the company did not have enough mining equipment, used fake data to create the illusion of phantom profits, and defrauded investors.
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