HashFlare Founders’ Extradition to the US
Sergei Potapenko and Ivan Turogin, the co-founders of the now-closed crypto cloud mining platform HashFlare, are set to be extradited to the United States from Estonia after the Estonian government met the requirements for their extradition.
The pair have been charged with money laundering and wire fraud in the US. If found guilty, Potapenko and Turogin could each face up to 20 years in federal prison.
HashFlare, once a top cloud mining platform, was found to be a Ponzi Scheme three years ago. The Estonian and US law enforcement arrested the founders of the company in Estonia at the end of 2022. Last September, the Estonian government gave the green light to the extradition of Potapenko and Turogin, but the two managed to appeal the decision the following month successfully.
At the time, an Estonian court said that the government had failed to take into consideration the conditions in American detention facilities when approving the extradition. Now, Estonian authorities have gathered evidence on those facilities that show fundamental human rights won’t be violated after Potapenko and Turogin get extradited.
Try GPT Definity AI today, the #1 crypto trading robot! Click here to learn more. Artificial intelligence trading robots are taking over the trading eco-system, you can join this revolution and profit from daily revenues! Get ahead of the trading game with Artificial Intelligence crypto trading software today!
HashFlare Collected Millions From Investors Before Shutting Down
Before closing shop in 2019, HashFlare had collected over $550 from investors, who in 2018 started claiming that the cloud mining platform was no longer distributing profits. Per the US Justice Department, HashFlare offered contracts to customers for a fee in exchange for mining rewards earned from the firm’s mining operations.
Justice Department Says HashFlare Didn’t Own Mining Equipment
However, it was discovered that HashFlare never had any mining equipment or facility. So, where did the company’s founders get the mining rewards? It is alleged that Potapenko and Turogin used to buy Bitcoin from exchanges and distribute it as rewards to investors.
The Justice Department says HashFlare scammed thousands of Americans. Now, the United States Federal Bureau of Investigation has asked victims to come forward and file a report on the FBI’s official website.
Besides scamming cloud mining investors, Potapenko and Turogin are accused of collecting $20 million from various venture capitalists to develop a digital bank dubbed Polybius, which never materialized.
Disclaimer: Mining Plus Crypto specializes in amplifying content for dozens of cryptocurrency and blockchain firms, and your company could be next on the list! For inquiries, please reach out to us through or Telegram Chat. Given the unpredictable nature of cryptocurrencies, we advise you to thoroughly research before investing. A portion of the content available on our website, including broker reviews, is paid content or content contributed by guest writers and does not necessarily represent the opinions of Mining Plus Crypto. We claim no liability for the accuracy, quality, and content of advertisements, products, or any other materials, including ad spaces displayed on our site. For a comprehensive understanding, please review our full terms and conditions, and disclaimer.