Two Estonian nationals, Sergei Potapenko and Ivan Turõgin, pleaded guilty to operating a $577 million cryptocurrency Ponzi scheme through their fraudulent mining service, Hashflare. The scheme, running from 2015 to 2019, deceived hundreds of thousands worldwide, including U.S. investors, by selling mining contracts despite lacking the computing power to generate promised returns. Instead, they fabricated mining profits and used proceeds to buy luxury assets. As part of their plea, they agreed to forfeit over $400 million, which will be allocated for victim compensation. Both pleaded guilty to conspiracy to commit wire fraud and face up to 20 years in prison, with sentencing set for May 8. The FBI Seattle Field Office led the investigation with support from Estonian authorities and the Justice Department. Victims can seek restitution through an official remission process.
Hashflare Operators Plead Guilty in Massive Fraud Case
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