logo

U.S. Federal Prosecutor Appeals to Increase Sentence of HashFlare Mining Fraud Case Mastermind

By: theblockbeats.news|2025/08/27 20:22:19
0
Share
copy
ponziponzi
circuitcircuit

BlockBeats News, August 27th, according to Decrypt report, U.S. federal prosecutors have appealed to the Ninth Circuit Court of Appeals to seek an increase in the "time served" sentence for Estonian citizens Sergei Potapenko and Ivan Turõgin in the $577 million HashFlare cryptocurrency Ponzi scheme case, with the federal prosecutors calling it "unusually lenient."

The two had previously pleaded guilty to conspiracy, defrauding 440,000 global victims between 2015 and 2019 through false mining contracts, presenting a fictitious "dashboard" of returns, and using the funds for luxury goods and to pay early withdrawers. Previously, the judge sentenced the two to three years of supervised release and a $25,000 fine each, rejecting the prosecutor's request for a 10-year prison term citing concerns over the treatment of foreign defendants in the U.S., including a possible "indefinite detention." Legal experts say the judge's reasoning based on "time served, immigration risk, and restitution concerns" is sufficient, and the Ninth Circuit Court of Appeals generally respects the trial judge's discretion, making a upheld ruling likely, but the lenient sentence could weaken the deterrence of economic crimes. The case has seized $400 million for victim compensation and is referred to as the "largest fraud case in the Western District of Washington."

-- Price

--

You may also like

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

A VC from the Crypto world said AI is too crazy, and they are very conservative

Amid the Crypto frenzy and with investors who once missed out on Pinduoduo, a new AI fund called Impa Ventures was established, rejecting bubble narratives and adhering to a conservative "problem-first" strategy to seek real business value.

The Evolutionary History of Contract Algorithms: A Decade of Perpetual Contracts, the Curtain Has Yet to Fall

The ten-year evolution of perpetual contracts: from pulling the plug on 312 to the shocking short squeeze of TRB, a deep dive into the pricing machine that averages $200 billion daily, written with countless liquidations and real money, detailing the blood and tears of risk control theory.

Kicked out by PayPal, Musk aims to make a comeback in the cryptocurrency market

Cashtags generated a trading volume of 1 billion dollars just a few days after its launch, marking a strong start for Musk's super app strategy. For the cryptocurrency market, X's layout may be one of the most anticipated sources of retail growth after the meme coin craze subsides.

Solana ETF News: What Is a Solana ETF and Why Is Goldman Sachs Betting $108 Million on SOL?

Solana ETF news today shows Goldman Sachs disclosed a $108M position while total SOL ETF inflows reached $1.45B. Analysts now expect up to $6B in institutional demand as Solana trades 71% below its all-time high.

The Joker is back
Bigger pools, auto-play, lucky buffs.
The Joker is backJoin now and grab your rewards.

Contents

Popular coins

Latest Crypto News

03:42

The U.S. Treasury Department has implemented a new round of financial sanctions against Iran, freezing approximately $344 million in cryptocurrency assets

According to Jinshi, the U.S. Treasury announced on April 24 a new round of financial sanctions against Iran, updating the "Specially Designated Nationals List," and imposing sanctions on several "wallets" related to Iran, freezing approximately $344 million in cryptocurrency assets. U.S. Treasury S...
02:42

Tennessee completely bans cryptocurrency ATMs, upgrading fraud regulation

Tennessee Governor Bill Lee has signed a bill that bans the operation of cryptocurrency ATMs statewide, becoming the second state after Indiana to implement a comprehensive ban. The bill (HB 2505) has officially taken effect and will be enforced starting July 1.According to the regulations, installi...
BTCBTC
--
02:42

Data: If BTC breaks through 81,265 USD, the cumulative short liquidation intensity on major CEX will reach 1.742 billion USD

According to Coinglass data, if BTC breaks through $81,265, the cumulative short liquidation intensity on mainstream CEX will reach $1.742 billion. Conversely, if BTC falls below $74,299, the cumulative long liquidation intensity on mainstream CEX will reach $1.588 billion.
02:42

Data: If ETH breaks through 2,428 USD, the cumulative short liquidation intensity on mainstream CEX will reach 1.007 billion USD

According to Coinglass data, if ETH breaks through $2,428, the cumulative short liquidation intensity on mainstream CEX will reach $1.007 billion. Conversely, if ETH falls below $2,210, the cumulative long liquidation intensity on mainstream CEX will reach $935 million.
00:42

The Humanity Foundation announced adjustments to the H token vesting plan and set a deadline, with some institutions publicly disclosing their choice to unlock at a discount immediately

The Humanity Foundation has recently made significant adjustments to the $H token allocation plan, requiring investors to make a final choice between two options by April 26 at 09:00 UTC: one, extend the distribution, pushing the Cliff to September 25, 2026, and changing to equal distribution over 1...
APEAPE
--
STRKSTRK
--
Read more
Community
iconiconiconiconiconiconicon

Customer Support Bot：@WEEX_support_smart_Bot

VIP Services：support@weex.com