Yesterday, two Estonian citizens pleaded guilty for organizing a massive program of Cryptocurrency Ponzi which has fraud hundreds of thousands of investors worldwide, including in the United States.
The regime involved a fraudulent cryptocurrency service called hashflare, causing investor losses of more than $ 577 million.
The founders are suitable for losing $ 400 million in assets
According to court documents, Sergei Potapenko and Ivan Turõgin, both 40 years old, have sold contracts to customers, which gives them to a share of cryptography undermined by their alleged cryptographic extraction service.
Between 2015 and 2019, Hashflare sales totaled more than $ 577 million. However, the company did not have the necessary calculation power to carry out most of the extraction it claimed to perform. To hide this, the company’s web dashboard displayed falsified data as supposed mining benefits of customers.
The fraudulent activities of the Estonian nationals extend beyond Hashflare. In 2017, the co-founders launched an initial range of parts (ICO) for a project called Polybius, saying that it would establish a bank specializing in digital currency.
The initiative has promised dividends to investors in the future benefits of the bank, which led to at least 25 million dollars raised. However, no bank of this type has never been created.
The authors encouraged individuals to invest their economies in both companies, providing them with substantial yields. Potapenko and Turõgin even distributed certain profits to the first investors to maintain the credibility of the regime.
However, companies have not succeeded in the promised returns. The funds have rather been redirected to various accounts and cryptographic portfolios controlled by the two men. The product was then used to buy real estate and luxury vehicles and maintain investment and cryptography accounts.
As part of their advocacy agreement, the duo will lose assets worth more than $ 400 million, which will be used in remission to compensate the victims. More details on this process will be announced on a later date.
Guilt advocacy
After investigating their fraudulent cryptography operations, the authorities apprehended Potapenko and Tur insurance in Estonia in November 2022. At the time, the MJ of the United States accused the duo of 16 leaders of fraud by wire and a chief conspiracy to commit money laundering.
After its arrests, the United States asked for its extradition, but an Estonian circuit court canceled the request in 2023, citing concerns about the conditions of American detention facilities.
However, in January 2024, their deportation to the United States was again approved, which led to their recent guilt pleas.
The two men admitted a chief of conspiracy to commit fraud by wire and should be sentenced on May 8. Legal factors.
Free binance $ 600 (EXCLUSIVE Cryptopotato): Use this link to record a new account and receive an exclusive welcome offer of $ 600 on Binance (all details).
Limited offer for cryptopotate players at Bybit: Use this link to record and open a free $ 500 position on any part!
