Estonian Bitcoin Miners Appeal Successful, US Extradition Overturned
Summary:
Ivan Turogin and Sergei Potapenko, Estonian co-founders of Bitcoin mining company HashFlare, have successfully appealed their extradition to the United States on charges of fraud and money laundering. The U.S Justice Department labeled HashFlare, in operation from 2015 to 2019, a Ponzi scheme that duped victims into accruing $575 million. Despite their indictment by a U.S grand jury in November 2022, the Tallinn Circuit Court overturned their extradition order citing procedural flaws and inhumane confinement conditions in the U.S. If convicted, they each face up to 20 years in prison.
Estonian Bitcoin cloud miners, Ivan Turogin and Sergei Potapenko, co-founders of HashFlare, have had their extradition to the United States successfully overturned. They were to stand trial in the U.S over 18 allegations of fraud and money laundering. The news broke on Nov. 29th when the Tallinn Circuit Court reversed a lower court's decision to extradite them, according to a local news outlet.
The U.S Justice Department attests that HashFlare, which was operational from 2015 to 2019, functioned as a Ponzi scheme. The scheme reportedly conned hundreds of thousands, raking in a total of $575 million. HashFlare purported to lend hash power applicable to crypto mining, and induced investment in a pretend bank. If Turogin and Potapenko are found guilty in America, they could spend two decades in prison.
The two individuals were detained in Estonia, where they hold citizenship, subsequent to an indictment laid down by a U.S grand jury in November 2022. Their extradition was sanctioned by Estonian authorities in September. BBC reports that the investigation, which stands as one of Estonia's largest fraud charges, was conducted locally with assistance from 15 American agents.
"Evidence on the conditions of confinement in the United States" was presented by the defense - it was compelling enough that the Estonian government hadn't anticipated it, and raised questions about procedural flaws in the extradition orders. Reversal of these orders was supported by the circuit court leaning on precedents set by the European Court of Justice and the European Court of Human Rights.
The court has ruled that Turogin, Potapenko, and their respective families be remunerated over 100,000 euros ($110,000). This judgment is subject to an appeal and must be lodged before the 11th of Dec.
In May, Estonia implemented enriched Anti-Money Laundering legislation such as the Financial Action Task Force Travel Rule, leading to about 400 virtual asset service providers shutting their operations.
Published At
11/29/2023 8:20:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.