Estonian Duo Plead Guilty to $577m Crypto Ponzi Scheme

Summary: Two Estonian nationals, Sergei Potapenko and Ivan Turõgin, have pleaded guilty to operating a deceptive cryptocurrency fraud scheme that amassed 7 million from investors. The duo falsely claimed to have extensive crypto mining capabilities and misused funds for personal luxuries while executing a classic Ponzi scheme. In a plea deal, they are set to forfeit over 0 million in assets and face potential prison sentences of up to 20 years.

Affected: Estonian nationals and investors in cryptocurrency

Keypoints :

• Potapenko and Turõgin operated HashFlare from 2015 to 2019, falsely representing their mining capabilities.
• They allegedly conducted a second fraudulent scheme called Polybius, claiming to operate a virtual currency bank that never existed.
• The individuals laundered funds using shell companies and purchased luxury properties and vehicles as part of their operations.