The co-founders of the now-defunct crypto mining service HashFlare, Sergei Potapenko and Ivan Turõgin, are asking a U.S. federal judge for leniency as they await sentencing.
Request for Leniency
Sergei Potapenko and Ivan Turõgin, who pleaded guilty to conspiracy to commit wire fraud, are asking a U.S. federal judge to show leniency ahead of their sentencing. Prosecutors are calling for a ten-year prison sentence.
Challenging Financial Losses
Potapenko and Turõgin dispute the extent of the financial harm caused, claiming that many customers of HashFlare actually profited due to rising cryptocurrency prices. They noted that of the $487 million spent on mining contracts, roughly $2.3 billion was withdrawn, limiting long-term financial damage.
Prosecution's Position
Despite the defendants' claims, prosecutors assert that HashFlare was a textbook Ponzi scheme, with the co-founders faking mining capacity and misleading investors. They urge Judge Robert Lasnik to impose a sentence that reflects the seriousness of the offense and deters future crypto fraud.
The challenges facing Potapenko and Turõgin are compounded by their hopes for deportation to Estonia, although a U.S. court has ordered them to remain in the country. This case raises significant questions about the future of international prosecution in the cryptocurrency space.
