Estonia: HashFlare founders arrested in “astounding” $575 million crypto fraud scheme

Source: CoinTelegraph

“The two founders of the now-defunct Bitcoin cloud miner HashFlare have been arrested in Estonia over their alleged involvement in a $575 million crypto fraud conspiracy. HashFlare was a cloud mining company created in 2015 …. The company was seen as one of the leading names in the business at the time but shut down a large portion of its mining operations in July 2018. However, according to a statement from the United States Department of Justice citing court documents, the entire mining operation, run by founders Sergei Potapenko and Ivan Turogin, was part of a ‘multi-faceted scheme’ that ‘defrauded hundreds of thousands of victims.’ This included convincing victims to enter into ‘fraudulent equipment rental contracts’ through HashFlare and persuading other victims to invest in a fake digital currency bank called Polybius Bank.” (11/22/22)