Two Estonian citizens are facing 18 criminal charges in Washington state for allegedly running a series of crypto mining and ICO scams that bilked investors out of $575 million. cheyenneligon reports
that allegedly defrauded hundreds of thousands of investors around the world of a combined $575 million.released Monday, Sergei Potapenko and Ivan Turogin – both 37-year-old residents of Tallinn, Estonia – were partners in a series of interconnected fraudulent schemes using cryptocurrency. The two defendants allegedly used a variety of shell companies to launder the proceeds of their schemes, and spent investor funds on luxury cars and real estate in Estonia.
In May 2015, facing a growing number of angry customers, Potapenko and Turogin allegedly started a second company, HashFlare. According to prosecutors, they told their clientele that orders for mining equipment would be converted to “remote mining services” and – instead of the physical equipment they were promised – those sending funds would receive a share of the service’s profits.
HashFlare’s customers were allegedly shown statements with fraudulent crypto balances. When customers tried to cash out, prosecutors say Potapenko and Turogin attempted to give them the run-around, coming up with reasons why they could not pay out and making them jump through legal hoops, such as fulfilling know-your-customer requirements before they could be paid.
In 2018, HashFlare announced that it was shutting down, citing rising energy costs and claiming that bitcoin mining was no longer profitable even as prosecutors say Potapenko and Turogin continued mining for themselves, using miners that they’d purchased with stolen customer funds.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
75-year-old charged with intoxication manslaughter for fatal crash on I-35A 75-year-old man has been charged with intoxication manslaughter for a crash on I-35W in Johnson County early Saturday morning.
Read more »
Young Christmas Parade performer dies after being hit by truck at Christmas parade; driver chargedThe driver said he lost control of the truck and hit the child at a low rate of speed, according to police.
Read more »
Young Christmas Parade performer dies after being hit by truck at Christmas parade; driver chargedThe driver said he lost control of the truck and hit the child at a low rate of speed, according to police.
Read more »
Young Christmas Parade performer dies after being hit by truck at Christmas parade; driver chargedRaleigh police confirm the girl accidentally hit by a truck towing a float during the Raleigh Christmas Parade has died.
Read more »
Florida man charged with murder after allegedly beating another man to death with baseball batA Florida man is facing murder charges after police say he beat another man to death with a baseball bat, believing his girlfriend was in the man's home.
Read more »