According to Cointelegraph, the legal proceedings involving Sergei Potapenko and Ivan Turogin, co-founders of the crypto mining service Hashflare, have taken a complex turn following directives from the U.S. Department of Homeland Security (DHS). The two Estonian nationals, who are currently facing charges in the United States, received letters from DHS instructing them to "leave the United States" as part of a broader initiative by the Trump administration to implement mass deportations. This directive conflicts with a previous court order from Judge Robert Lasnik, which restricted their travel as part of their bail conditions.
In February, Potapenko and Turogin admitted to conspiracy to commit wire fraud, acknowledging their role in defrauding Hashflare users of over $550 million between 2015 and 2019. They also raised $25 million from investors in 2017 under the pretense of creating a digital bank called Polybius, which was never established. Following their indictment in October 2022, the pair were arrested in Estonia and extradited to the U.S. in May 2024. They have been out on bail since July 2024 but face potential sentences of up to 20 years in prison.
The situation has been further complicated by the DHS letters, which have reportedly been sent to thousands of immigrants who entered the U.S. legally using the CBP One app. Some U.S. citizens have also received similar letters as part of U.S. President Donald Trump's deportation efforts. Mark Bini, a defense attorney for Potapenko and Turogin, expressed concern over the conflicting directives from federal authorities, noting the legal predicament it creates for his clients, who are required to comply with both the law and their bail conditions.
Bini speculated that the U.S. government might be suggesting that Potapenko and Turogin "self-deport" to Estonia, following a Justice Department memo indicating a potential shift in enforcement policy for crypto-related criminal cases. The co-founders were expected to remain in the U.S. until at least August 14 for their sentencing hearings. To navigate this legal ambiguity, Potapenko and Turogin now carry letters indicating that DHS has deferred action on their "self-deportation" for one year, should authorities attempt to detain them. Despite the possibility of prison sentences, the co-founders have returned $400 million in crypto payments to users and agreed to forfeit assets frozen by the government in 2022. Bini hopes to persuade the judge to allow his clients to return to Estonia, arguing that there was no actual financial harm to Hashflare's customers.
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