HashFlare
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anchored·dRWsFH…PGAJSummary
HashFlare was an Estonian cloud mining service founded by Sergei Potapenko and Ivan Turogin under their company HashCoins OU. Operating from 2015 to 2019, the platform allegedly sold fraudulent cryptocurrency mining contracts backed by virtually no real mining infrastructure, defrauding over 440,000 customers worldwide of approximately $577 million. Both founders were arrested in Tallinn in November 2022, extradited to the United States, and pleaded guilty in February 2025 to conspiracy to commit wire fraud; they were sentenced in August 2025 to time served (16 months).
Connected Entities
1 entitiesTimeline(9 events)
2013
HashCoins OU incorporated in Estonia by Sergei Potapenko and Ivan Turogin.
DOJ Indictment / Baker McKenzie Summary2015
HashFlare cloud mining platform launches, offering SHA-256, ETHASH, Scrypt, DASH, and Zcash contracts to global customers.
DOJ Case Page — Western District of Washington2017-05
Potapenko and Turogin launch the Polybius ICO, raising approximately $25–31 million for a purported cryptocurrency bank that is never established.
Baker McKenzie Blockchain Blog2019-08
HashFlare ceases selling new cloud mining contracts, ending the active sales phase of the scheme.
DOJ Indictment2022-11-20
Potapenko and Turogin arrested by Estonian authorities in Tallinn on an 18-count U.S. federal indictment (conspiracy to commit wire fraud, 16 counts of wire fraud, conspiracy to commit money laundering).
DOJ — Two Estonian Nationals Extradited2024-05
Both defendants extradited from Estonia to the United States; released on bond to the Seattle area.
DOJ Western District of Washington2025-02-12
Potapenko and Turogin each plead guilty to one count of conspiracy to commit wire fraud in U.S. District Court, Seattle; agree to forfeit assets valued over $400 million.
DOJ — Two Estonian Nationals Plead Guilty in $577M Cryptocurrency Fraud Scheme2025-04-11
DHS erroneously sends self-deportation orders to both defendants despite an active court order requiring their presence in Washington state for sentencing; DOJ subsequently secures a one-year deportation deferral.
CoinDesk — Feds Mistakenly Order Estonian HashFlare Fraudsters to Self-Deport2025-08-13
U.S. District Court in Seattle sentences both defendants to 16 months (time served), $25,000 fines, and 360 hours of community service; over $450 million in seized assets designated for victim restitution. DOJ evaluates whether to appeal.
KIRO 7 News SeattleDecision Log
- hash: HoKuo6WBMD9CYNuMqBKnXuUMNmqHuUDfMcskgUyqHbRP
This investigation is cryptographically anchored to the Solana blockchain (1 event). 13 of 15 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-5
generated: 5/30/2026, 12:57:58 PM
last updated: 7/25/2026, 10:30:06 AM
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