Police have arrested two males in Estonia in reference to a $575 million cryptocurrency fraud and cash laundering scheme.
They’re accused of defrauding lots of of 1000’s of individuals, tricking them into getting into into fraudulent rental contracts for crypto mining gear and getting them to put money into a digital forex financial institution that by no means launched.
Victims paid greater than $575 million to Potapenko and Turõgin’s firms. The lads then used shell firms to launder the proceeds and to buy actual property and luxurious automobiles, in accordance with the indictment.
US Lawyer Nick Brown for the Western District of Washington says: “These defendants capitalised on each the attract of cryptocurrency, and the thriller surrounding cryptocurrency mining, to commit an infinite Ponzi scheme.”
The lads are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one depend of conspiracy to commit cash laundering. If convicted, they every face a most penalty of 20 years in jail.