Crime is crime everywhere, and committing it with cryptocurrencies doesn’t change much. Moreover, there is no need for special rules for crypto in this regard. Today, the US announced the extradition of two crypto fraudsters. Money laundering and Ponzi scheme charges center around cryptocurrencies.
US and Crypto Investigations
Cryptocurrencies‘ complex structure and ease of transfer between countries make them attractive to malicious individuals. Ponzi schemes are particularly popular. Additionally, as the number of investors in this field increases, the number of fraudsters is also expected to rise.
According to a recent announcement by the Department of Justice, two Estonian citizens have been extradited to the US to face trial for their roles in a massive, multifaceted cryptocurrency Ponzi scheme. Both 39 years old, Sergei Potapenko and Ivan Turõgin were arrested in Tallinn, Estonia, on November 20, 2022, based on an indictment prepared in the Western District of Washington.
“According to the indictment, Potapenko and Turõgin allegedly encouraged hundreds of thousands of victims to purchase contracts that entitled them to a share of the virtual currency mined by the defendants’ supposed crypto mining service, HashFlare. Potapenko and Turõgin claimed that HashFlare operated a massive cryptocurrency mining operation.
Potapenko and Turõgin allegedly offered contracts that allowed customers to rent a percentage of HashFlare’s supposed mining capacity for a fee. In return, HashFlare agreed to pay the contract holders the virtual currency generated by a portion of the operation. Between 2015 and 2019, customers worldwide allegedly signed HashFlare contracts worth over $550 million.”
Remember, the Çiftlikbank fraudster also placed mining devices instead of new cows on his platform to lure victims before fleeing Turkey.
