Hashflare co-founders, a crypto Mining Ponzi scheme that steals $ 577 million from hundreds of thousands of investors worldwide, both seek sin in Wednesday’s conspiracy to make wire fraud.
Sergei Potapenko and Ivan Turõgin, both 40, were arrested in their native Estonia in November 2022 and was released in the US in an 18-count accusation. Yesterday, both men sought a sin in a number of per conspiracy to make wire fraud, which brings a maximum sentence of 20 years to prison.
Between 2015 and 2019, Potapenko and Turõgin convinced Hashflare investors to rent a percentage of scheme mining operations in exchange for a percentage of cryptocurrency hashflare made. But, according to court documents, Hashflare has only a small portion of mining equipment considered to be – less than 1% of computing power potapeno and Turõgin sold. When investors try to claim their proceeds, prosecutors say the two men can fight against making payments by making reasons or paying for the crypto purchased in the open market.
Read more: Two Estonians charged with running a series of crypto scams worth $ 575m
Potapenko and Turõgin attorneys said that none of Hashflare investors have suffered financial damage, telling CoinDesk that only men are lying about Hashflare’s mining operation size.
“Ivan and Sergei have ran successful businesses, providing real services, using nearly 100 estonians, and doing charity in Estonia. As Ivan (Wednesday), one of him and businesses admitted Sergei’s promise to the crypto mine and in fact the crypto is mine, but not as it promises; , Norton Rose Fulbright US LLP partner and Tutogin advice.
“It is important, however, as we will show in the censorship, no customer has experienced any harm. Ivan and Sergei expect to return to Estonia and continue their lives. “
According to court documents, the men used their victim’s money to make twelve real estate investments and buy expensive cars. As part of the please agreement, Potapenko and Turõgin said to lose assets worth more than $ 400 million, which would be used to pay for investors.
Potapenko and Turõgin will be penalized in a Seattle court on May 8.
