Two Estonian Men Accused Of Scamming Thousands Out Of $575 Million Worth Of Cryptocurrency, Feds Say

According to the indictment, the duo sold HashFlare as a massive cryptocurrency mining operation, which is a process of using computers to generate cryptocurrency, such as Bitcoin, for profit. Investigators say HashFlare performed Bitcoin mining at a rate of less than one percent of the computing power it was described as having. Since the cryptocurrency had no physical currency to back it, Potapenko and Turõgin allegedly paid off investors with more virtual currency.