US prosecutors appeal sentences of two HashFlare Ponzi scheme founders, argue for 10-year imprisonment

ChainCatcher news, according to Cointelegraph, U.S. prosecutors have appealed the sentencing of the co-founders of the crypto mining service company HashFlare.

Prosecutors believe that HashFlare founders Sergei Potapenko and Ivan Turõgin should be sentenced to 10 years in prison and have filed an appeal regarding this. HashFlare is a $577 million Ponzi scheme company. On August 12, Seattle federal court judge Robert Lasnik sentenced the two to time served, fined them $25,000, and required them to complete 360 hours of community service during supervised release. It is expected that their sentences will be served in Estonia.

The two were arrested in October 2022 and detained in their home country of Estonia for 16 months. In May 2024, they were extradited to the United States, where they pleaded guilty to conspiracy to commit wire fraud.