Two Estonian nationals have been arrested on suspicion of organizing a $575 million (£485 million) cryptocurrency fraud that claimed the lives of hundreds of thousands of individuals.
The US government is seeking the extradition of Sergei Potapenko and Ivan Turogin, both 37. Following a combined investigation by the Federal Bureau of Investigation and Estonian Police, the two were apprehended.
The two are accused of persuading investors to support HashFlare, a Bitcoin mining operation, and Polybius, a fictitious virtual bank.
The two are accused of conspiring to commit money laundering and wire fraud, each of which carries a 20-year maximum prison penalty, the US Department of Justice (DoJ) said in a statement.
The defendants have appeared in court in Tallinn, the capital of Estonia, and are being held pending extradition to the US, according to the release.
According to the DoJ, the two reportedly deceived victims by offering them the chance to invest in HashFlare’s Bitcoin mining activities.
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