HashFlare Founders Seek Leniency in Sentencing Amid Claims of Customer Gains Despite $577 Million Ponzi Scheme

Key Points

1. HashFlare founders Sergei Potapenko and Ivan Turõgin pleaded guilty to wire fraud in a $577 million Ponzi scheme.

2. The founders claim that 390,000 customers withdrew $2.3 billion, exceeding their initial investments of $487 million.

3. Prosecutors argue the scheme caused around $300 million in losses, with funds used to support the founders' lavish lifestyles.

4. Over 50,000 of HashFlare's 440,000 customers were based in the US, collectively investing more than $130 million.

5. The founders have forfeited over $400 million in assets to repay victims and seek leniency in sentencing, despite facing a recommended 10-year prison sentence.