US Extradition of $575M Crypto Fraudsters from Estonia Underway

Estonia has reportedly made a significant decision to extradite two of its citizens to the United States following their alleged involvement in a massive cryptocurrency fraud and money laundering scheme amounting to $575 million.

Arrests and Indictments

The arrest of Sergei Potapenko and Ivan Turõgin took place in November, as announced by the U.S. Department of Justice (DOJ). The charges against them include one count of conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering in the U.S.

Court documents reveal that Potapenko and Turõgin allegedly lured victims into fraudulent equipment rental contracts with HashFlare, a cryptocurrency mining service they co-founded. Additionally, they persuaded victims to invest in a virtual currency bank named Polybius Bank, promising dividends that were never delivered. It is reported that victims collectively invested more than $575 million into these ventures.

Extradition Proceedings

According to Daily Hodl, reports from the local newspaper Postimess indicate that Estonia initially approved the extradition of Potapenko and Turõgin in September. However, a circuit court later annulled the order, citing concerns over the detention conditions in the United States.

According to Crypto Potato, following a thorough assessment, the Ministry of Justice has confirmed that sufficient evidence has been gathered regarding the detention conditions in the U.S. This has led to the conclusion that the prerequisites for extradition have been satisfied.

Potential Sentencing

In the event of conviction, both Potapenko and Turõgin could face a maximum prison sentence of 20 years. The extradition process is expected to proceed as Estonia upholds its commitment to justice and international cooperation in combating financial crimes.

Photo: Valery Tenevoy/Unsplash

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