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.
This directly contradicts the federal court order requiring them to reside in King County, Washington, while awaiting the sentencing hearing scheduled for August 14. The actions from the DHS have angered the defendants' lawyers, who sent a letter to Judge Robert Lasnik requesting clarification.
Moreover, on April 11, Turõgin received another email with the same content, further escalating concerns. The lawyers described this behavior as 'concerning', especially in light of recent cases of wrongful deportation, such as that of Kilmar Armando Abrego Garcia – who was mistakenly sent to a prison in El Salvador.
Defendant's side: “Wants to go home but doesn't dare defy the court's order”
In a letter sent to the court, the lawyers stated: “Although Sergei and Ivan are very eager to return to their home country immediately, they still understand that they are bound by the court's order and must comply.” They emphasized that their clients have not violated any bail conditions and have always cooperated with U.S. law enforcement.
If the DHS does not retract its request, the lawyers indicated they would ask the court to hold a hearing with the participation of DHS legal representatives to clarify this ironic situation.
The HashFlare case: From the dream of mining coins to a million-dollar scam
#HashFlare was a company providing 'cloud mining' services, operating from 2015 to 2019. However, the two founders were arrested in Tallinn, Estonia in November 2022 and extradited to the U.S. in May 2024.
As of February this year, both have admitted to the act of 'conspiracy to commit wire fraud', including misleading promotions regarding the profitability of cloud mining contracts provided by HashFlare. Additionally, they confessed to being involved in an ICO project named Polybius – which raised $31 million in 2017 with a promise to build a digital bank. However, this money was used for personal purposes instead of investing in products as promised.
According to the Federal Bureau of Investigation (FBI), Potapenko and Turõgin spent most of the money from the ICO to buy real estate, cars, cryptocurrencies, and mining equipment for personal use. The total assets seized in this case amount to approximately $400 million.
Awaiting judgment… but does the DHS 'have the last word'?
Currently, the lawyers are still working with the DHS to request an extension of legal stay in the U.S. for their client. Meanwhile, attorney Mark E. Bini, representing Potapenko, stated: “My client has fully complied with all bail conditions and is willing to cooperate to the end.”
Lawyer Andrey Spektor, who represents Turõgin, also expressed hope that: “When the court realizes that Ivan did not cause any actual financial damage and has contributed to the development of blockchain technology, it is the court – not the DHS – that should be the one to say: ‘It’s time to go home.’”
Contacting the crypto market and Binance users
The legal events surrounding the two founders of HashFlare serve as a strong reminder for the cryptocurrency community about transparency, legal compliance, and the potential risks of unclear investment models. For users investing through decentralized platforms or high-profit mining projects, the HashFlare lesson is a clear testament that no 'easy profit' model comes without risks.
For Binance users or large exchanges, choosing a platform with a transparent control system, regulatory compliance, and good risk management is a crucial factor to ensure investment safety during times of strong market volatility in crypto.
⚠️ Risk warning:
Investing in cryptocurrency carries many risks, including the risk of losing all capital. This article is not intended as an investment recommendation. Users need to conduct thorough research and consider carefully before making decisions. Crypto is not suitable for everyone – invest responsibly.