According to ChainCatcher and Cointelegraph, Sergei Potapenko and Ivan Turõgin, co-founders of the now-defunct cryptocurrency mining service HashFlare, requested a reduction in additional imprisonment after admitting to telecommunications fraud. The two are accused of orchestrating a $577 million Ponzi scheme, resulting in approximately $300 million in losses.
Prosecutors argue that both should be sentenced to 10 years in prison, stating that their crimes are among the largest fraud cases handled by the court. However, Potapenko and Turõgin argue that they have cooperated with the investigation and served 16 months in prison in Estonia, and that their sentence should not be excessively long.
The two were arrested in Estonia in November 2022 and extradited to the United States in May 2024. They are currently out on bail, and the sentencing hearing is scheduled for August 14.