Crypto Con-men: Estonian Duo Gets 20-Year Time-out for $577M Ponzi Scheme Shenanigans
Estonian nationals Sergei Potapenko and Ivan Turõgin pleaded guilty to a massive cryptocurrency fraud scheme, netting $577m. Their company, HashFlare, claimed impressive crypto mining capabilities but merely mined investors’ wallets. Facing up to 20 years in prison, they’ve agreed to forfeit over $400m in assets—because even Ponzi schemes need a refund policy!
Hot Take:
It looks like these Estonian buddies will soon be trading in their luxury cars for orange jumpsuits and learning the intricate art of prison bartering! Who knew that running a cryptocurrency Ponzi scheme could be so… unprofitable in the long run?
Key Points:
- Sergei Potapenko and Ivan Turõgin pled guilty to a massive cryptocurrency fraud scheme.
- The duo’s venture, HashFlare, falsely claimed to mine cryptocurrencies on a large scale.
- They used investor funds to purchase real estate and luxury goods instead of mining crypto.
- They allegedly laundered funds through shell companies and fake contracts.
- A second scam involved a non-existent virtual currency bank, raising $25 million.
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