Two Estonian nationals, Sergei Potapenko and Ivan Turogin, anticipate sentencing as they plead guilty to fraud charges while cooperating with U.S. prosecutors.
Charges Against HashFlare Founders
Potapenko and Turogin, co-founders of the cryptocurrency mining service HashFlare, pleaded guilty to conspiracy to commit fraud. They were arrested in Estonia and extradited to the U.S. where charges were filed in October 2022.
Requests from the Parties
According to prosecutors, they are seeking a 10-year prison sentence for each defendant, citing significant harm caused to HashFlare's victims. Meanwhile, the defendants' lawyers are requesting time served, arguing that their clients' customers did not suffer major losses. Prosecutors countered this by highlighting that the defendants' earlier claims were based on unreliable data.
Immigration Status and Implications
During court proceedings, Potapenko and Turogin received notifications about having to 'self-deport' as part of the Trump administration's immigration policy. It remains uncertain whether the judge will take their immigration status into account during sentencing.
Sentencing for the HashFlare founders is expected soon, potentially impacting their future life and outcomes given the severity of the charges.
