Through Ponzi scheme, two people carried out cryptocurrency fraud of Rs 4700 crore. The accused committed fraud in the name of crypto currency and even created a fake virtual bank.
Both the accused, residents of Estonia in Europe, have been arrested. The Justice Department of America has given information about this. Now the US government is waiting for the extradition of the accused so that the case against them can go on.
Both the accused, Sergei Potapenko and Ivan Turogin, are 37 years old. Both of them cheated lakhs of people through pyramid scheme (Ponzi scheme). Both fraudulently got people’s money invested in the cryptocurrency mining service HashFlare. The money of the victims was also deposited in Polybius Bank (Virtual currency bank), which was not actually a bank. The alleged profit from the bank was also not given to the investors.
The US Justice Department said that charge sheets have been presented against both of them in 18 cases. The department said that through the companies and shell companies of Sergei Potapenko and Ivan Turogin, fraud of Rs 4700 crore was done. He spent the money received by the people to buy real estate and luxury cars.
Kenneth Polite Jr., Assistant Attorney General for the Justice Department’s Criminal Division, said the size and scope of the scheme was astonishing. The government of America and Estonia is trying to confiscate the property and profits of the accused in this case.
FBI had investigated the case
The Justice Department said the money laundering conspiracy allegedly involved at least 75 real estate properties, 6 luxury vehicles, cryptocurrency wallets, thousands of crypto mining machines. The matter was investigated by the FBI.
Four more people also involved, were cheating since 2015
CBC News reports that apart from the two accused, it also includes four more people living in Estonia, Belarus, and Switzerland. Prosecutors told that these people had targeted lakhs of people between 2015 and 2019.
Attorney Nick Brown said, both used to target people through Ponzi scheme. Then both used to cheat the investors. The people who had invested in the beginning, those people were given the money of later investors as ‘profit’. This series continued for a long time.