HashFlare cloud mining operator pleads guilty to $577 million cryptocurrency fraud

on February 14th, according to The Block, the U.S. Department of Justice stated that the operators of the now defunct cloud mining service HashFlare, Estonian nationals Sergei Potapenko and Ivan Turõgin, have pleaded guilty to multiple charges related to a $577 million cryptocurrency Ponzi scheme. Potapenko and Turõgin's sentencing is scheduled for May 8th, where they could face up to 20 years in prison. HashFlare suspended its mining services in 2018 and eventually ceased operations, profiting over $577 million. Potapenko and Turõgin were arrested in November 2022 in the Estonian capital of Tallinn, charged with conspiracy to commit wire fraud (16 counts), one count of wire fraud, and one count of conspiracy to launder money, and were later extradited to the U.S.