(NewsNation) — Two Estonian nationals pleaded guilty Wednesday to the organization of a cryptocurrency Ponzi scheme that affected hundreds of thousands of people globally.
Sergei Potapenko and Ivan Turõgin, both 40, agreed to forfeit more than $400 million as part of their guilty pleas, according to the Department of Justice.
Both men pleaded guilty to one count of conspiracy to commit wire fraud, and each faces a maximum of 20 years in prison.
According to court documents, between 2015 and 2019, they sold contracts to customers promising a share of cryptocurrency mined by their company, HashFlare.
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They falsified data and then showed it to customers as if it were accurate mining profits. Potapenko and Turõgin then spent the proceeds on luxury cars, real estate and investments in cryptocurrency, per the DOJ news release.
Those who believe they may have been a victim in this case should visit www.fbi.gov/hashflare.
