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ChainCatcher reports that, according to Cointelegraph, Sergei Potapenko and Ivan Turõgin, co-founders of the now-defunct cryptocurrency mining service HashFlare, have requested exemption from further imprisonment from a US court after admitting to telecommunications fraud.The two are accused of orchestrating a $577 million Ponzi scheme, resulting in losses of approximately $300 million. Prosecutors are seeking a 10-year prison sentence for each, stating that their crimes constitute one of the largest fraud cases ever tried by the court. Potapenko and Turõgin argue that they have cooperated with the investigation and already served 16 months in prison in Estonia, so their sentences should not be excessively long. The two were arrested in Estonia in November 2022, extradited to the United States in May 2024, and are currently out on bail. Their sentencing hearing is scheduled for August 14.  

According to a report by Jinse Finance, the two co-founders of the now-defunct crypto mining service company HashFlare, after admitting to wire fraud, have asked a U.S. judge not to impose additional prison time; however, prosecutors argue that they should each be sentenced to ten years in prison for orchestrating a $577 million Ponzi scheme. In a sentencing memorandum submitted Wednesday to U.S. District Judge Robert Lasnik in Seattle, prosecutors stated that Sergei Potapenko and Ivan Turõgin should each receive a 10-year prison sentence, as they committed "extremely serious crimes" that resulted in losses of approximately $300 million for victims. Prosecutors noted that a ten-year sentence is reasonable, as the HashFlare case is the largest fraud ever tried in this court. However, in a sentencing memorandum submitted the same day, Potapenko and Turõgin argued that such a sentence would be too harsh, citing the time they already served while detained in Estonia and their cooperation with the case as grounds for leniency.