1 year ago
Ivan Turogin and Sergei Potapenko are suspected successful a $575 cardinal fraud case, but they can’t beryllium exposed to U.S. detention conditions.
Ivan Turogin and Sergei Potapenko, co-founders of Bitcoin unreality miner HashFlare, person successfully appealed their extradition from Estonia to the United States, wherever the 2 look 18 counts of fraud and wealth laundering. The Tallinn Circuit Court overturned a little court’s bid connected Nov. 29, according to a section property report.
According to the United States Justice Department, HashFlare, which operated from 2015 to 2019, was a Ponzi strategy with hundreds of thousands of victims paying successful a full of $575 million. The institution claimed to lease hashing powerfulness for crypto mining. It besides encouraged concern successful a fake bank. If convicted successful the United States, Turogin and Potapenko each look up to 20 years successful prison.
Related: Atomic Wallet asks to flip suit implicit $100M hack, saying it has ‘no US ties’
Turogin and Potapenko were arrested successful Estonia, wherever they are citizens, aft a U.S. expansive assemblage returned an indictment successful November 2022. The Estonian authorities approved their extradition successful September. According to the BBC, the probe of the men was carried retired successful Estonia with the assistance of 15 Americans and was 1 of the biggest fraud cases successful the country’s history.
The FBI’s Seattle Division is seeking accusation from imaginable victims of 2 fraudulent schemes launched by Ivan Turõgin and Sergei Potapenko done their companies HashCoins, https://t.co/nkvQ93QCgz, and Polybius.
— Hacker News (@Hacker__News) January 6, 2023The businessmen’s defence provided “evidence regarding the conditions of detention successful the United States” that the authorities had not considered and claimed determination were procedural irregularities successful issuing the extradition orders. In overturning those orders, the circuit tribunal cited European Court of Justice and the European Court of Human Rights practice.
The HashFlare homepage. Source: HashFlareThe tribunal ordered Turogin, Potapenko and their families to person implicit 100,000 euros ($110,000) successful reimbursement. Its determination tin beryllium appealed by Dec. 11.
Estonia passed enhanced Anti-Money Laundering laws, including the instauration of the Financial Action Task Force Travel Rule, that led to the closure of astir 400 virtual plus work providers successful May.
Magazine: E For Estonia: How Digital Natives are Creating the Blueprint for a Blockchain Nation
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