Court Imposes Lenient Penalty on Estonian Cryptocurrency Business Owners in U.S. Judgment
Estonian Crypto Entrepreneurs Ivan Turogun and Sergei Potapenko Sentenced for Cryptocurrency Fraud
In a significant move towards accountability for cryptocurrency fraud, Ivan Turogun and Sergei Potapenko, Estonian nationals and co-founders of the cryptocurrency mining service HashFlare, were sentenced to 16 months in prison by U.S. District Judge Robert S. Lasnik in the U.S Western District Court. The sentencing took place on Tuesday in Seattle, United States.
The pair were convicted for their roles in a $577 million cryptocurrency Ponzi scheme involving the digital currency OneCoin. OneCoin was marketed as a legitimate investment opportunity but was actually a pyramid scheme that targeted hundreds of thousands of people worldwide from 2015 to 2019.
Despite the initial expectation of a 10-year prison term, the lighter sentence was a result of Turogun and Potapenko's plea deal and cooperation with the authorities. In addition to the 16-month prison term, they were each ordered to pay a $25,000 fine and complete 360 hours of community service over three years. The sentence also included the forfeiture of over $450 million in assets to compensate the scheme's victims.
Notably, Turogun and Potapenko have already served their 16-month sentence in U.S. custody, as they were initially held in Estonia from November 2022 until their extradition to the U.S. in May 2024. The confirmation of the sentence comes after the completion of court proceedings.
The sentencing of Turogun and Potapenko is expected to have a deterrent effect on other individuals involved in similar cryptocurrency fraud schemes. It marks a significant step in holding accountable those involved in OneCoin's fraudulent activities.
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