- Estonian crypto executives Sergei Potapenko and Ivan Turõgin have received deportation notices from DHS despite court orders requiring them to remain in the U.S.
- The HashFlare founders pled guilty to conspiracy to commit wire fraud in February and are awaiting sentencing on August 14.
- Their attorneys are working with prosecutors to resolve the contradiction between DHS demands and court orders to prevent potential wrongful deportation.
The co-founders of defunct crypto mining firm HashFlare, Estonian nationals Sergei Potapenko and Ivan Turõgin, have been ordered to “immediately” leave the United States by the Department of Homeland Security (DHS), despite a court order requiring them to remain in King County, Washington. According to a letter to U.S. District Judge Robert Lasnik reviewed by Decrypt, both men received threatening emails from DHS on April 6 stating, “It is time for you to leave the United States.”
The deportation notices warned the defendants they would be “subject to potential law enforcement actions,” including criminal prosecution and civil penalties if they failed to depart, and ominously stated that “the federal government will find you.” Turõgin reportedly received a second identical message on April 11, escalating concerns about the contradictory directives.
Legal Limbo and Deportation Fears
The attorneys for Potapenko and Turõgin expressed grave concerns in their letter, noting that “although there is nothing Ivan and Sergei would want more than to immediately go home, they understood that they are also under Court order to remain in King County.” Their legal team highlighted recent news about wrongful deportations, specifically referencing the mistaken deportation of Kilmar Armando Abrego Garcia to El salvador.
While prosecutors are reportedly working with DHS to extend the defendants’ parole in the U.S., their lawyers warned they may request a hearing requiring DHS counsel to appear if the issue remains unresolved. The attorneys characterized the communications as “disturbing,” noting that “immigration authorities make mistakes, and individuals who should not be in custody end up in custody.”
The $575 Million Fraud Case Background
Potapenko and Turõgin were arrested in Tallinn in November 2022 and extradited from Estonia in May 2024. In February, they pled guilty to conspiracy to commit wire fraud for falsely marketing cloud-based crypto mining contracts through HashFlare from 2015 to 2019.
Additionally, they admitted to orchestrating a second scheme involving a $31 million initial coin offering for a digital bank project called Polybius in 2017. According to the FBI, instead of creating the promised digital bank, the pair used “a large portion of the proceeds for their own personal benefit.”
As part of their plea agreement, the defendants consented to forfeit approximately $400 million in assets, including real estate, cryptocurrencies, vehicles, and mining equipment. Their sentencing is scheduled for August 14.
Mark E. Bini, Potapenko’s lawyer, stated on Monday that his client has followed all release conditions and remains “committed to fully complying.” Similarly, Turõgin’s attorney, Andrey Spektor, added that he hopes the judge, rather than DHS, will determine when “it’s time to go home” after considering his client’s contributions “to breakthroughs in the crypto space.”
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