Two Men Arrested in Estonia for One of ‘Biggest Cryptocurrency Fraud Cases’

The two men are suspected of having defrauded hundreds of thousands of people out of 562 million euros.

Two men have been arrested in Estonia on suspicion of defrauding hundreds of thousands of people out of $575 million (562 million euros) in a cryptocurrency scam, Estonian police said on Monday.

“Invest in their chips”

Sergei Potapenko and Ivan Turogin were arrested in a joint Estonian police-FBI operation on Sunday, with the United States seeking their extradition, police said in a statement.

“This is one of the biggest fraud cases we have ever had in Estonia,” said Oskar Gross, head of the police’s cybercrime office.

The statement clarified that the suspects “invited people to invest in their cryptocurrency tokens. But, they did not get their investment back as promised.”

“The proceeds of the fraud were allegedly laundered through real estate purchases and shell companies,” the statement continued.

The joint operation mobilized more than 100 police officers, including fifteen American federal agents.

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