Estonian Government Approves Extradition of Crypto Fraud Suspects to the US
Following a previous denial by an Estonian circuit court, the local government has, once again, approved the extradition of two of its citizens suspected of cryptocurrency fraud to the United States. The suspects are accused of running a fake crypto service that defrauded unsuspecting victims of over $500 million.
Extradition Approval Reversed
According to local news outlet Postimees, Ivan Turogin and Sergei Potapenko will be extradited to the US, with Estonia’s Ministry of Justice stating that there was sufficient evidence to show that the extradition conditions of the suspects have been satisfied. The latest development came shortly after the Tallinn Circuit Court blocked a previous extradition approval by the government. Part of the court’s ruling stated that the Estonian authorities failed to check if the extradition would infringe on the fundamental rights of the individuals.
Fraudulent Crypto Service and Charges
Turogin and Potapenko operated a cryptocurrency mining business called HashFlare and a crypto bank, Polybius, which the US Department of Justice (DOJ) described as a Ponzi scheme. Through the fraudulent crypto service, the men were able to get $575 million from investors, which they laundered through shell companies to purchase real estate and luxury cars. Following their arrest in November 2022, the DOJ charged them with 16 counts of wire fraud and one count of conspiracy to commit money laundering.
Potential Prison Sentence
With their extradition to the United States already approved, Turogin and Potapenko could face up to 20 years in prison if convicted of their crimes. Meanwhile, it is unknown when the suspects will be handed over to the US.
Hot Take: Estonian Government Approves Extradition of Crypto Fraud Suspects to the US
The Estonian government has once again given its approval for the extradition of two citizens accused of cryptocurrency fraud to the United States. The suspects are alleged to have operated a fake crypto service that defrauded victims of over $500 million. Despite a previous denial by an Estonian circuit court, the Ministry of Justice has determined that there is sufficient evidence to proceed with the extradition. This decision comes after a previous extradition approval was blocked by the Tallinn Circuit Court due to concerns about potential infringement on the fundamental rights of the individuals. If convicted, the suspects could face up to 20 years in prison.
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