Despite $575 million fraud, Bitcoin miners avoid extradition

Two co-founders of HashFlare, a Bitcoin (BTC) cloud miner, successfully avoided extradition from Estonia to the United States. Ivan Turogin and Sergei Potapenko are suspected of 18 counts of fraud and money laundering.

On November 29, the Tallinn District Court overturned a lower court’s extradition decision. The US Department of Justice accuses HashFlare, which was active from 2015 to 2019, of a pyramid scheme.

Good news! 🎉 Bitvavo is giving its readers free BTC, XRP or another crypto today 🚀

Hundreds of thousands of crypto victims and $575 million in damage

In this scam, old investors are paid with the money of new investors. Hundreds of thousands of victims were duped by the scam, losing a total of $575 million.

The company HashFlare claimed to rent hashing power for Bitcoin (BTC) mining and encouraged investments in a fictitious bank. Turogin and Potapenko face a maximum sentence of 20 years if convicted in the United States.

Both men are Estonian citizens and were arrested in their home countries. The arrest was followed by an indictment by the U.S. Attorney’s Office in 2022. In September, the Estonian government approved her extradition.

Amazing compensation for the scammers and their families

The infamous Ponzi scheme is one of the largest fraud cases in Estonian history. According to the BBC, 15 Americans were involved in the FBI investigation.

Turogin and Potapenko’s lawyers presented evidence in the appeal about prison conditions in the United States. They pointed out procedural irregularities in the extradition orders.

The district court then rejected the orders and referred the government agency to the rules of the European Court of Justice and the European Court of Human Rights. As compensation, the court decided to pay damages of 100,000 euros to Turogin, Potapenko and their families.

🔔 Today: All Dutch crypto holders get €60 free gold

Tightening of European anti-money laundering regulations

Estonia recently adopted improved anti-money laundering (AML) laws. This legislation, which includes the introduction of the Financial Action Task Force Travel Rule, forced nearly 400 crypto providers to close their doors.

Despite the strict regulations, the European Banking Authority (EBA) has drawn up a plan to tighten AML rules. According to the EBA, the regulations are outdated and the new guidelines help to connect the different systems of crypto providers.

Post views: 142

Related News

Leave A Reply

Please enter your comment!
Please enter your name here

Exit mobile version