HashFlare: DOJ posts September update on release motions and remission
The case page describes pending early-termination motions and preparations for a victim-payment process.
- Cited claims
- 3
- Source records
- 3
- Edition revision
- 2
In this investigation
September 2026 procedural update
DOJ's case page, updated 24 September 2026, says Potapenko and Turogin filed early-termination motions on 18 September and that the government planned to oppose them. This is not an order granting the motions. Its remission update says RCB had been retained, with the launch dependent on asset liquidation, victim data and a petition form. The reviewed notice does not say a petition window is already open.
The actual sentence
On 12 August 2025, DOJ reported that Sergei Potapenko and Ivan Turogin received 16-month prison sentences for the HashFlare fraud. The announcement said they had already served that time and also described fines, community service and supervised release. A prosecutor's request for a longer sentence should not be confused with the sentence the court imposed.
What the contracts represented
HashFlare sold contracts promising a share of cryptocurrency-mining profits. DOJ said sales between 2015 and 2019 exceeded $577 million and relied on dashboards falsely reporting mining activity and returns. The business lacked the computing capacity to mine most of the cryptocurrency it claimed to generate.
Assets and the next process
The announcement described forfeited assets collectively valued above $450 million and said details of a remission process would follow. That did not itself open an application window or establish each victim's compensation. The separate official case page carries court documents and later updates, which should be consulted before relying on an old headline about recovered assets.
Sources, dates and limits
Checked 23 October 2026. The August 2025 sentence and September 2026 motions are separate events. More than $577 million in contracts sold is not a calculation of net victim losses, and forfeited assets are not equivalent to payments already made.
Evidence & sources
- Adjudicated finding
The August 2025 DOJ announcement reports 16-month sentences for HashFlare operators and describes fake mining dashboards and insufficient computing capacity.
Supporting excerpt: Two Estonian fraud defendants sentenced for $577 million fraud scheme
sentenced today to 16 months in prison
Two Estonian fraud defendants sentenced for $577 million fraud scheme ↗ - Source reported
DOJ maintains a separate HashFlare case page with court documents and victim-process updates; those updates must be checked independently of the sentencing headline.
Supporting excerpt: United States vs. Sergei Potapenko and Ivan Turogin
Case Number: 22-cr-00185-RSL
United States vs. Sergei Potapenko and Ivan Turogin ↗ - Source reported
DOJ's case page, updated 24 September 2026, says Potapenko and Turogin filed early-termination motions on 18 September and that the government planned to oppose them. This is not an order granting the motions. Its remission update says RCB had been retained, with the launch dependent on asset liquidation, victim data and a petition form. The reviewed notice does not say a petition window is already open.
Supporting excerpt: DOJ HashFlare case update: motions and remission preparations
September 18, 2026
DOJ HashFlare case update: motions and remission preparations ↗
