Co-founder Hashflare pleaded guilty in $ 577m crypto mining Ponzi scheme

Co-founder of the Hashflare, cried mining ponzian schemes, who stole 577 million dollars in investors throughout the world, as they pleaded guilty to conspiracies on Wednesday to carry out wire scams.

Sergej Potapenko and Ivan Turogin, both 40, were arrested in their hometown in November 2022. And extradited to the US indictment of 18 accounts. Yesterday, men also plead guilty of a number of abolitions for convinces to commit a wire fraud, which transmits a maximum sentence of 20 years in prison.

Between 2015 and 2019. years, Potapenko and Turoun convinced Hashflare’s investors to rent a percentage of crypt’s crypting operations in exchange for the percentage of cryptocurrent Hashflare. But according to court documents, Hashflare had only a tiny fraction of mining equipment he allegedly – less than 1% of computer forces was tapped and the Turogin sold. When investors tried to demand their income, prosecutors say that two men or resist payments by cleaning excuses or paid them back with a crippt purchased in the open market.

Read more: Two Estonans accused of launching a series of crypt’s scams in the amount of $ 575 million

Lawyers Potapenko and Turogin say none of Hashfflare investors suffered financial damage, he said that the only crime was laying on the size of the Hashflare mining surgery.

“Ivan and Sergei ran a successful company, providing real services, using almost 100 esters and worked for the Charity (Wednesday), one of his and Sergei companies promised to my cryptou and actually crypt, but not As much as he promised; instead, he sometimes repaid customers with a crippt, bought in the open market, “Andrei Spektor, partner in Norton Rose Fulbright American LLP and lawyer in the Turogin.

“What is needed, however, as we will show in punishment, no customer suffered any harm. Ivan and Sergei look forward to returning to Estonia and continue their lives. “

According to court documents, men used money their victims to make dozens of real estate investments and buying luxury cars. As part of a guilty plea agreement, Potapenko and Turogin agreed that the funds would be occupied over 400 million dollars, which will be used to return the investor.

Potapenko and Turogin will be convicted in court in Seattle 8. May.