HashFlare Founders Receive Time Served in $577 Million Ponzi Scheme, DOJ Considers Appeal

• HashFlare operated between 2015 and 2019, misleading investors with fake mining capacity reports.

• Prosecutors described it as a classic Ponzi scheme, diverting funds to personal luxuries.

• The founders forfeited over $400 million in assets, with 390,000 customers withdrawing $2.3 billion from the platform.

HashFlare co-founders received time served for their roles in a $577 million Ponzi scheme. Learn more about the case and its implications.

What is the HashFlare Ponzi Scheme?

The HashFlare Ponzi scheme was a fraudulent operation that misled investors by falsely claiming high returns from cryptocurrency mining. Between 2015 and 2019, it raised over $577 million, ultimately defrauding around 440,000 customers.

How did HashFlare operate?

HashFlare’s operation involved creating fake dashboards that reported inflated mining capacities and returns. The scheme paid existing investors with funds from new customers, a hallmark of Ponzi schemes. Prosecutors noted that the founders diverted millions for personal luxuries, including real estate and luxury vehicles.

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