Close Menu
Cryprovideos
    What's Hot

    AI-Centered Layer-1 Blockchain Altcoin SAHARA Flames Out Following New Binance Itemizing – The Day by day Hodl

    June 26, 2025

    Former Tether, Hut 8, Blackstone execs to launch $1B crypto treasury agency

    June 26, 2025

    NVIDIA's Advances in Autonomous Car Simulation with World Basis Fashions

    June 26, 2025
    Facebook X (Twitter) Instagram
    Cryprovideos
    • Home
    • Crypto News
    • Bitcoin
    • Altcoins
    • Markets
    Cryprovideos
    Home»Crypto News»Estonian Nationals Plead Responsible in $577 Million Crypto HashFlare Ponzi Scheme – Decrypt
    Estonian Nationals Plead Responsible in 7 Million Crypto HashFlare Ponzi Scheme – Decrypt
    Crypto News

    Estonian Nationals Plead Responsible in $577 Million Crypto HashFlare Ponzi Scheme – Decrypt

    By Crypto EditorFebruary 14, 2025No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email



    Estonian Nationals Plead Responsible in $577 Million Crypto HashFlare Ponzi Scheme – Decrypt

    The U.S. Lawyer’s Workplace for the Western District of Washington secured $400 million in asset forfeiture as a part of a responsible plea from two Estonian nationals who operated a $577 million crypto Ponzi scheme.

    Sergei Potapenko and Ivan Turõgin, each 40,  pleaded responsible to conspiracy to commit wire fraud after promoting fraudulent crypto mining contracts by way of their firm HashFlare. 

    Nevertheless, the defendants lacked the required computing energy to conduct the crypto mining they promised, as an alternative utilizing falsified information on their platform to create the phantasm of success.

    As a part of their settlement, the defendants agreed to forfeit belongings, together with actual property, luxurious autos, and crypto accounts, based on a assertion on Thursday.

    “Between 2015 and 2019, HashFlare’s gross sales totaled greater than $577 million, however HashFlare didn’t possess the requisite computing capability to carry out the overwhelming majority of the mining,” stated the U.S. Lawyer’s Workplace.

    Potapenko and Turõgin now resist 20 years in jail for conspiracy to commit wire fraud, with their sentencing scheduled for Could 8.

    The 2 of them additionally admitted to operating one other fraudulent operation, Polybius, an Preliminary Coin Providing (ICO) for a digital financial institution undertaking that raised roughly $31 million in 2017.

    The funds raised by way of Polybius had been by no means invested within the financial institution, and no dividends had been ever paid to buyers, additional including to the fraudulent nature of their schemes, the assertion reads.

    “As a substitute of utilizing the proceeds to create a digital financial institution, Turõgin and Potapenko used a big portion of the proceeds for their very own private profit,” the FBI Seattle workplace stated. 

    The U.S. Lawyer’s Workplace alleges the defendants laundered the fraud proceeds by way of at the least 75 properties, six luxurious autos, crypto wallets, and hundreds of crypto mining machines.

    The FBI’s Seattle Subject Workplace performed a key position within the investigation, working with worldwide regulation enforcement companies to make sure the defendants had been apprehended and extradited from Estonia.

    Each culprits had been arrested on November 20, 2022, in Tallinn, Estonia, and had been later extradited to the U.S. to face prices.

    The FBI additionally calls for added people who consider they had been victims of the Hashflare fraudulent scheme to return ahead. It has arrange a devoted web site the place potential victims can submit data.

    The responsible plea and the forfeiture are a part of a broad effort by U.S. authorities to carry crypto operators accountable for fraudulent actions. 

    The crackdown follows important actions taken earlier in 2024 when the U.S. Lawyer’s Workplace for the Western District of Washington secured a record-breaking $1.51 billion in fines. 

    The bulk got here from the worldwide crypto change Binance, which was penalized in a $4.3 billion settlement for violating U.S. rules.

    Edited by Sebastian Sinclair

    Each day Debrief Publication

    Begin day-after-day with the highest information tales proper now, plus unique options, a podcast, movies and extra.



    Supply hyperlink

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    AI-Centered Layer-1 Blockchain Altcoin SAHARA Flames Out Following New Binance Itemizing – The Day by day Hodl

    June 26, 2025

    Former Tether, Hut 8, Blackstone execs to launch $1B crypto treasury agency

    June 26, 2025

    COIN Information: Coinbase Inventory Soars Highest Since 2021 Nasdaq Debut

    June 26, 2025

    CZ Binance Says Proudly owning 0.1 Bitcoin is The New American Dream: Right here is Why ‣ BlockNews

    June 26, 2025
    Latest Posts

    CZ Binance Says Proudly owning 0.1 Bitcoin is The New American Dream: Right here is Why ‣ BlockNews

    June 26, 2025

    Metaplanet Surpasses Tesla With 12,345 Bitcoin Holdings – Bitbo

    June 26, 2025

    Greatest New Cryptocurrency to Purchase Now as Bitcoin Goals to Break Above $108K

    June 26, 2025

    Dealer Who Precisely Predicted 2018 Bitcoin Backside Says One Solana-Primarily based Altcoin Has ‘Very Actual Probability’ of Exploding 450%+ – The Day by day Hodl

    June 26, 2025

    Tahini’s Bitcoin Treasury: How A Household Chain Outsmarted Inflation

    June 26, 2025

    Bitcoin Is Not The First Cryptocurrency? Surprising Ripple Revelation Takes XRP Group By Shock | Bitcoinist.com

    June 26, 2025

    Tether, Blackstone Vets Elevating $1 Billion for Public Bitcoin, Ethereum and Solana Treasury – Decrypt

    June 26, 2025

    Indian Politician Requires Bitcoin Reserve Pilot – Bitbo

    June 26, 2025

    CryptoVideos.net is your premier destination for all things cryptocurrency. Our platform provides the latest updates in crypto news, expert price analysis, and valuable insights from top crypto influencers to keep you informed and ahead in the fast-paced world of digital assets. Whether you’re an experienced trader, investor, or just starting in the crypto space, our comprehensive collection of videos and articles covers trending topics, market forecasts, blockchain technology, and more. We aim to simplify complex market movements and provide a trustworthy, user-friendly resource for anyone looking to deepen their understanding of the crypto industry. Stay tuned to CryptoVideos.net to make informed decisions and keep up with emerging trends in the world of cryptocurrency.

    Top Insights

    Brazil’s Largest Change Faucets Into Crypto Growth With New Futures Merchandise

    May 10, 2025

    Coinbase Faces 'Copycat' Securities Lawsuit in Oregon After Dodging Gensler's SEC – Decrypt

    April 19, 2025

    Ripple CEO Clashes With Senate Crypto Chair Lummis

    May 20, 2025

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    • Home
    • Privacy Policy
    • Contact us
    © 2025 CryptoVideos. Designed by MAXBIT.

    Type above and press Enter to search. Press Esc to cancel.