HashFlare founders want no more jail time as US asks for 10 years

Key Points

1. Prosecutors argue Potapenko and Turõgin ran a 'classic Ponzi scheme' between 2015 and 2019, defrauding 440,000 customers of $577 million, with much of the funds used for their lavish lifestyles.

2. The founders claim that 390,000 customers withdrew $2.3 billion from HashFlare and argue that all potential victims will be fully compensated, likely from seized assets.

3. Over 50,000 of HashFlare's customers were based in the US, investing more than $130 million into the fraudulent scheme.

4. The duo, extradited to the US in May 2024, pleaded guilty to conspiracy to commit wire fraud and are currently on bail, with sentencing scheduled for August 14.

5. Despite a court order to remain in the US, the founders previously expressed a desire to return home, causing uncertainty about their legal status.