HashFlare Crypto Scammers Set for Extradition to US

The Estonian government has finally moved on with the extradition of the crypto scammers Ivan Turõgin and Sergei Potapenko to the United States.

Crypto Scammers on the Rampage

Ivan Turõgin and Sergei Potapenko are two crypto merchants who were accused of internet fraud which ran to the tune of $575 million per a report from Estonian Public Broadcasting reports. The duo lured unsuspecting individuals to invest in the crypto mining firm called Hashflare, and a digital asset bank known as Polybius Bank. 

In the long run, funds put in by the victims were laundered into shell companies to “purchase real estate and luxury cars.”

It was later discovered that Polybius Bank never existed as Turõgin and Potapenko had spent the millions of dollars meant for its creation. In the lawsuit levied against the duo, 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines were listed. 

To this end, the crypto scammers were both charged with conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and 16 counts of wire fraud, with each of the crimes punishable by up to 20 years.

This is not the first time talks about extraditing the crypto scammers to the U.S. from Estonia will be coming up, however, in the past, the plan was impeded by the Tallinn Circuit Court that cited “procedural irregularities” and “conditions of detention in the United States.” 

Upon verification by the court and a serious consideration to Tallinn Circuit Court’s November 29 ruling, the Estonian Minister of Justice Kent Lalle confirmed that the conditions of the accused perpetrators’ upcoming detention facility in the United States were “humane” and “lawful.”

“The government concluded that the extradition of the citizens to the U.S. is justified in accordance with the rule of law and does not disproportionately affect the rights of the citizens,” Lalle noted in a statement.

Governments Swinging into Action

Generally, the crypto ecosystem is faced with the growing popularity of crypto scammers who now explore several strategies to cheat customers out of their hard-earned assets. The CFTC accused crypto platform Debiex of an online romance scam that led to the misappropriation of $2.3 million in customer funds, primarily from Asian American victims.

Considering the rise in crypto scammers, governments are becoming very active in the push against such crimes. A group of people conducting crypto scams worth approximately $1.5 million was busted in India’s Odisha state one week ago to show the coordinated efforts from law enforcement agencies around the world.

The extradition of the two crypto scammers to the U.S. may serve as a deterrent to others.