U.S. Authorities Accidentally Instruct Estonian HashFlare Scammers to Leave the Country Before Sentencing

HashFlare Ponzi Scheme: Founders Mistakenly Told to Self-Deport Before Sentencing

In a surprising twist to the HashFlare Ponzi scheme, U.S. immigration authorities mistakenly instructed Sergei Potapenko and Ivan Turogin—the Estonian co-founders of the $577 million crypto fraud—to self-deport. However, this order directly contradicted a federal court mandate requiring them to stay in Washington state until their August 2025 sentencing.

DHS Deportation Order Creates Chaos in Crypto Fraud Case

Earlier this month, the U.S. Department of Homeland Security (DHS) emailed both men, ordering them to leave the country immediately. The messages warned them of criminal charges and civil penalties if they failed to comply.

Although these emails resembled typical deportation notices, they ignored a crucial fact: Potapenko and Turogin were extradited from Estonia in 2022 at the U.S. Department of Justice’s (DOJ) request. They didn’t enter the U.S. illegally—they’re here as criminal defendants in a high-profile cryptocurrency scam.

DOJ Intervenes to Prevent HashFlare Ponzi Scheme Sentencing Delay

After receiving the emails, the defendants’ legal team sent a joint letter to the court, explaining how the conflicting messages caused serious distress. The court had already ordered the men to remain in King County, Washington, until sentencing.

Their attorney, Mark Bini, emphasized growing concern over immigration errors. He explained that both clients feared wrongful detention or deportation—even though they’ve complied fully with court requirements.

Just six days later, the DOJ responded. Officials coordinated with Homeland Security Investigations (HSI) and deferred the deportation order by one year. This move ensures the August 14, 2025 sentencing will proceed without disruption.

Next Steps in the Cryptocurrency Fraud Case

In February 2025, both Potapenko and Turogin pleaded guilty to conspiracy to commit wire fraud. They also agreed to forfeit more than $400 million in assets connected to the crypto Ponzi scheme. Since July 2024, they’ve been living in the Seattle area under bond.

Looking ahead, their lawyers plan to request a sentence of time served. If the court agrees, the men could return to Estonia immediately after sentencing. However, Judge Robert Lasnik will make the final decision based on the scale of the HashFlare fraud and its global investor impact.