U.S. prosecutors appeal the sentences of the two founders of the HashFlare Ponzi scheme, arguing that they should be sentenced to 10 years in prison

ChainCatcher news, according to Cointelegraph, U.S. prosecutors have appealed the sentencing of HashFlare co-founders regarding their prison terms.

Prosecutors believe that HashFlare founders Sergei Potapenko and Ivan Turõgin should be sentenced to 10 years in prison and have filed an appeal on this matter. HashFlare is a $577 million Ponzi scheme company. On August 12, U.S. District Judge Robert Lasnik sentenced the two to time served, a fine of $25,000, and required them to complete 360 hours of community service during supervised release, with their prison terms expected to be served in Estonia.

The two were arrested in October 2022 and were detained in their home country of Estonia for 16 months before being extradited to the U.S. in May 2024, where they pleaded guilty to conspiracy to commit telecommunications fraud.