HashFlare Co-Founders Face Sentencing After Guilty Plea Amid Claims of Fraud and Deportation Orders
Main Idea
HashFlare co-founders Sergei Potapenko and Ivan Turogin pleaded guilty to wire fraud for operating a Ponzi scheme, with prosecutors seeking a 10-year prison sentence despite their claim that victims suffered no loss.
Key Points
1. Sergei Potapenko and Ivan Turogin, co-founders of HashFlare, pleaded guilty to conspiracy to commit wire fraud.
2. US prosecutors allege HashFlare operated as a Ponzi scheme, misleading investors about returns.
3. The government is seeking a 10-year prison sentence for both co-founders, arguing the harm to victims is significant.
4. HashFlare returned approximately $400 million in cryptocurrency to users, but prosecutors maintain this does not negate the fraud.
5. Potapenko and Turogin were indicted in October 2022, arrested in Estonia, and extradited to the US in May 2024.
Description
Two Estonian nationals, Sergei Potapenko and Ivan Turogin, co-founders of HashFlare, pleaded guilty to conspiracy to commit wire fraud and face a potential 10-year prison sentence. HashFlare operated as a
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