The two founders of HashFlare request a reduction of their sentence in U.S. court, opposed by the prosecution

According to reports, the co-founders of HashFlare requested a U.S. court to waive their additional prison time after admitting to telecom fraud. However, the prosecution emphasized that the two orchestrated a Ponzi scheme involving $577 million and should be sentenced to 10 years in prison. The prosecution stated in a sentencing memorandum submitted to U.S. District Judge Robert Lasnik in Seattle that Sergei Potapenko and Ivan Turõgin should each receive a 10-year sentence for committing a 'horrific crime' that caused approximately $300 million in losses to victims. The prosecution also noted that given that HashFlare is the largest fraud case ever dealt with by the court, a 10-year sentence is reasonable. However, Potapenko and Turõgin, in a sentencing memorandum submitted on the same day, expressed that they have cooperated and are serving their sentences in Estonia, claiming the sentence is excessive. The two were arrested in Estonia in November 2022 and extradited to the U.S. in May 2024 after serving 16 months, where they admitted to conspiracy to commit telecom fraud. They are currently out on bail in the U.S., with a sentencing hearing scheduled for August 14.