Former HashFlare co-founders admitted to wire fraud and requested exemption from further imprisonment, while prosecutors argue their $577M Ponzi scheme caused $300M in losses, warranting a 10-year sentence.
PANews reported on August 7 that, according to Cointelegraph, former HashFlare co-founders Sergei Potapenko and Ivan Turõgin admitted to wire fraud and asked a US judge to exempt them from additional imprisonment. Prosecutors contend that the defunct mining service orchestrated a $577M Ponzi scheme which resulted in approximately $300M in victim losses, recommending a 10-year sentence for each. Arrested in Estonia in November 2022 and extradited to the US in May 2024 after serving 16 months, they pleaded guilty to conspiracy to commit wire fraud and are currently out on bail, with a sentencing hearing scheduled for August 14.