"FBI Arrests Two Estonian Men in $575M Crypto Fraud, Money Laundering Scheme"

The FBI and Estonian police recently arrested two Estonian citizens for their alleged involvement in a $575 million cryptocurrency fraud scheme.  Sergei Potapenko and Ivan Turõgin, both 37, are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering.  Prosecutors noted that the men persuaded victims to enter into fraudulent equipment rental contracts with the defendants' cryptocurrency mining service, HashFlare.  They also caused victims to invest in a phony virtual currency bank called Polybius Bank, which never paid out dividends.  The indictment charges Potapenko and Turõgin with conspiring to launder their criminal proceeds by using shell companies, phony contracts, and invoices.  The money laundering conspiracy allegedly involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.  Assistant Attorney General Kenneth Polite Jr. of the Justice Department's criminal division stated that the size and scope of the alleged scheme is truly astounding.  U.S. and Estonian authorities are working to seize and restrain these assets and take the profit out of these crimes.  If convicted, Potapenko and Turõgin each face a maximum penalty of 20 years in prison.  A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.

Fox Business reports: "FBI Arrests Two Estonian Men in $575M Crypto Fraud, Money Laundering Scheme"