DOJ May Appeal Time-Served Sentence in $577M HashFlare Ponzi Scheme

The mastermind behind the HashFlare cryptocurrency Ponzi scheme, which defrauded over 400,000 investors out of more than $577 million, has avoided additional jail time after a Seattle court sentenced them to time served. The founders, Sergei Potapenko and Ivan Turõgin, walked out of the hearing without any further prison sentence. This decision was based on their 16 months already spent in custody, including time served in Estonia and the United States. Their sentencing order includes a $25,000 fine and 360 hours of community service while being on supervised release.