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HashFlare cloud mining operator admits to $577 million Cryptocurrency fraud
On February 14th, PANews reported that the U.S. Department of Justice stated that the operators of the now-defunct cloud mining service HashFlare, Estonian nationals Sergei Potapenko and Ivan Turõgin, have pleaded guilty to multiple charges related to a $577 million Cryptocurrency Ponzi Scheme. Potapenko and Turõgin will be sentenced on May 8th and could face up to 20 years in prison. HashFlare suspended its mining services in 2018 and eventually ceased operations, making a profit of over $577 million. Potapenko and Turõgin were arrested in November 2022 in the Estonian capital, Tallinn, on charges of conspiring to commit wire fraud (16 charges), one count of wire fraud, and one count of conspiracy to launder money, and were later extradited to the United States.