The two co-founders of the cryptocurrency mining service HashFlare face a 10-year prison sentence in the U.S. for electronic fraud.

They are accused of orchestrating a Ponzi scheme worth $577 million, causing nearly $300 million in losses to investors, but argue that the proposed sentence is excessive because they cooperated and served time in Estonia.

MAIN CONTENT

  • The two co-founders of HashFlare are accused of electronic fraud and operating a Ponzi scheme worth $577 million.

  • They pleaded guilty and are awaiting sentencing with a proposed prison term of 10 years from the U.S. prosecutor.

  • The two defendants sought a reduced sentence due to their cooperation and having served 16 months in Estonia before being extradited to the U.S.

What acts have the two co-founders of HashFlare been accused of?

The two co-founders of HashFlare, Sergei Potapenko and Ivan Turõgin, are charged with fraud via electronic wire and operating a Ponzi scheme worth $577 million.

Specifically, the prosecutor described this as a 'horrific crime' causing approximately $300 million in damages to investors, emphasizing that this case is the largest fraud trial ever brought in the U.S. court system. The 10-year prison sentence reflects the seriousness of the case.

How did the investigation and prosecution process unfold?

The two defendants were arrested in Estonia in November 2022 and served 16 months before being extradited to the U.S. in May 2024.

They later pleaded guilty to conspiracy to commit electronic fraud in a U.S. federal court in Seattle, and are currently out on bail awaiting a sentencing decision expected on August 14, 2024.

"This is the largest electronic fraud case ever tried, causing serious damage to investors, thus a 10-year sentence is entirely appropriate."
Robert Lasnik, Federal Judge, Seattle, 2024

Why did the two defendants seek a reduced sentence?

Potapenko and Turõgin argue that a 10-year prison sentence is excessive, citing their cooperation with law enforcement and their time served in Estonia.

They state that accepting responsibility and the time already served should be considered for leniency to ensure fairness in sentencing.

What impact does this case have on the cryptocurrency mining sector?

The case highlights the legal and ethical risks in the cryptocurrency mining sector and serves as a warning for investors regarding opaque investment models.

As a result, global law enforcement agencies are increasing oversight to protect participants in the cryptocurrency market from large-scale fraud.

Frequently Asked Questions

What charges have the two co-founders of HashFlare been indicted on?

They are accused of conspiring to commit electronic fraud and operating a Ponzi scheme worth $577 million.

When is the sentencing date for the two defendants?

The trial is scheduled to take place on August 14, 2024, in the U.S.

Have the two defendants pleaded guilty?

They pleaded guilty to conspiracy to commit electronic fraud in a U.S. federal court.

Why did the two defendants seek a reduced sentence?

Because the two cooperated with the investigation and served 16 months in Estonia before being extradited to the U.S.

How does this case affect cryptocurrency investors?

It serves as a warning about the risks of fraud in cryptocurrency investment and increases regulatory scrutiny in the industry.

Source: https://tintucbitcoin.com/nha-sang-lap-hashflare-xin-giam-tu/

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