Founders of cloud mining service detained in Estonia

105
Ultramining.com

10:37 Nov 22, 2022

105
Founders of cloud mining service detained in Estonia

We are talking about HashFlare, the founders of which are accused of major fraud for $ 575 million.

HashFlare began operating in 2015 and helped users to engage in cloud mining. For several years, the company was a leader in its field, but three years after its founding, it ceased operations.

The U.S. Justice Department alleges that the service is just a scheme to steal money, which led many users to financial losses. According to the documents of the investigation, based on fictitious contracts the clients' money was transferred to Polybius Bank. With the illegally attracted funds were bought six expensive cars and 75 properties.

According to the representative of the U.S. attorney's office:

The scale of the pyramid scheme is staggering, as the fraudsters were able to take advantage of the opacity of the cloud mining process.

The detainees are also charged with conspiracy and money laundering. If extradited to the U.S., they face up to 20 years in prison.


Share to:
Related news