Crypto

These two scammers stole 555 million euros with a cryptocurrency scam.

The two men were arrested by the Estonian police after a lengthy investigation jointly with the FBI. The latter would allow them to embezzle almost 555 million euros over nine years. Two accomplices are in the process of extradition to the United States.

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mm. Sergey Potapenko and Ivan Turygin are accused of organizing a major cryptocurrency scam. In total, they would embezzle about 555 million euros, and the victims of their scheme would number in the hundreds of thousands. Their criminal career began in 2013. In the same year, they created a company that allegedly made equipment for bitcoin mining. In fact, they were content with buying ready-made configurations and reselling them. This activity has allowed them to establish themselves as virtual currency experts.

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They then created HashFlare, a cryptocurrency cloud mining equipment rental company, and Polybius Bank, a fake bank. The profits of their companies were made through the Ponzi system, a fraudulent financial scheme that consists in recovering clients’ investments with funds provided by new participants. When HashFlare investors or Polybius clients demanded their dividends or profits, these two bastards paid them… other people’s money.

Two accomplices planted a fortune in cryptocurrencies and euros on their victims.

While the duo’s victims were convinced that their cryptocurrency treasures were constantly increasing, the two accomplices were collecting money and laundering it into real estate and other luxury cars. US Attorney Nick Brown said of them: “The size and scope of the system is truly staggering. The accused took advantage of the allure of cryptocurrencies and the mystery surrounding their mining to create a massive Ponzi scheme.”

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The funds pledged for the capture of the two criminals correspond to the sum of the embezzled funds. Their hunt required the cooperation of hundreds of Estonian police officers and a dozen FBI agents. Vahur Werte, the Estonian prosecutor in charge of investigating the case, summarizes his findings: “Technology has greatly increased the risk of fraud. Before you entrust your money to a company or person, you should gather detailed information about your background.

Source: Bitcoin

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