DHS Error Orders HashFlare Founders to Leave U.S. Before $577M Crypto Ponzi Sentencing

In a bizarre twist, the U.S. Department of Homeland Security (DHS) mistakenly ordered the Estonian founders of HashFlare, Sergei Potapenko and Ivan Turogin, to self-deport—just four months before their scheduled sentencing in a $577 million cryptocurrency mining Ponzi scheme. The directive directly contradicted a standing court order requiring both men to remain in Washington state until their sentencing on August 14, 2025.

The duo, extradited from Estonia in 2022, had pleaded guilty in February to one count of conspiracy to commit wire fraud, agreeing to forfeit over $400 million. Each faces up to 20 years in prison. Since July 2024, they have been released on bond and residing in the Seattle area.

According to a joint letter filed by their legal team, both Potapenko and Turogin received alarming emails from DHS on April 11, instructing them to leave the U.S. immediately. The message warned of potential criminal prosecution if they remained, triggering concerns given their pending sentencing and compliance with court orders. “There is nothing Ivan and Sergei would want more than to immediately go home,” attorney Mark Bini noted, “but they understand they are under court order to stay.”

The Department of Justice quickly intervened, coordinating with Homeland Security Investigations (HSI) to obtain a one-year deferral of the self-deportation order, allowing the legal process to proceed as planned.

Potapenko and Turogin's legal team plans to request a sentence of time served, allowing them to return to Estonia immediately after the hearing. DHS has not issued a comment on the error. The incident adds to concerns over recent immigration missteps involving erroneous detentions and deportation threats.