Estonia has approved the extradition of two Estonian cryptocurrency entrepreneurs who were behind the $575 million Ponzi scheme HashFlare to the United States, as per the local news report.
This ruling came after the Tallinn Circuit Court’s block in November 2023, when it censured the Estonian government for neglecting to sufficiently look into crucial documents in the extradition case involving Sergei Potapenko and Ivan Turogin.
The United States authorities accused them of misappropriating $575 million from their clients to buy expensive cars and real estate. The duo faces 18 charges, including fraud and money laundering.
Following a complete review, the Ministry of Justice in Estonia has now concluded that there is enough evidence to support the extradition request without unduly impairing the fundamental rights of the subject.
Yet, it is unclear when Potapenko and Turogin will be extradited to the United States to face fraud charges
In November 2022, Turogin and Potapenko were taken into custody in Estonia in response to a formal request for their extradition from the U.S. Department of Justice (DoJ).
According to the indictment, the two conned the victims into investing in a cryptocurrency bank called Polybius Bank and buying fictitious equipment rental contracts from the HashFlare mining service.
According to the prosecution, both companies ran Ponzi schemes. Potapenko and Turogin allegedly used shell corporations to launder $575 million in client funds, according to the DoJ.
Also Read: Estonia’s New Crypto Law Forces Nearly 400 Firms to Move Elsewhere
