HashFlare Ponzi Founders Get Time Served for $577M Crypto Scheme,
0Crypto crime
Ponzi Scheme
Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.
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Last updated:
August 13, 2025
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Two Estonian nationals avoided additional prison time for orchestrating one of crypto’s largest Ponzi schemes (HashFlare) after receiving sentences matching the 16 months they already served in custody.
Sergei Potapenko and Ivan Turõgin, both 40, were sentenced by U.S. District Judge Robert S. Lasnik for their roles in the $577 million HashFlare fraud that victimized hundreds of thousands of investors worldwide between 2015 and 2019.
U.S. District Judge Robert S. Lasnik ordered each defendant to pay $25,000 in fines and to complete 360 hours of community service during their supervised release in Estonia.
The sentencing incorporated forfeiture of over $450 million in seized assets for victim compensation, while prosecutors sought ten-year prison terms and are considering an appeal.
The $577 Million Mining Mirage.
HashFlare marketed itself as a crypto mining service selling contracts that promised customers shares of profits from blockchain validation activities. Court documents revealed the operation used fake online dashboards showing false mining activity while lacking the computing capacity to mine the vast majority of the claimed cryptocurrency.
The duo’s...
https://cryptonews.com/news/hashflare-ponzi-founders-get-time-served-for-577m-crypto-scheme-escape-additional-jail/
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