According to CryptoPotato, the Estonian government has approved the extradition of two citizens, Ivan Turogin and Sergei Potapenko, to the United States on charges of cryptocurrency fraud. The suspects are accused of running a fake crypto service that defrauded victims of over $500 million. Estonia's Ministry of Justice stated that there was sufficient evidence to show that the extradition conditions of the suspects have been satisfied.
The latest development comes after the Tallinn Circuit Court blocked a previous extradition approval by the government, stating that Estonian authorities failed to check if the extradition would infringe on the fundamental rights of the individuals. 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. The men allegedly obtained $575 million from investors, which they laundered through shell companies to purchase real estate and luxury cars.
Following the arrest of Turogin and Potapenko in November 2022, the DOJ charged them with 16 counts of wire fraud and one count of conspiracy to commit money laundering. With their extradition to the United States already approved, the suspects could face up to 20 years in prison if convicted of their crimes. It is currently unknown when the suspects will be handed over to the US.
