A cryptocurrency wallet linked to the HashFlare investigation has reactivated after nearly 3.5 years of inactivity. According to on-chain data, 10,600 ETH was removed from the wallet and it was stated that this amount corresponded to approximately 18.5 million dollars with the value in the news. The move in question coincided with the period when US prosecutors were continuing the objection process on the grounds that the sentences given to Estonian citizens Sergei Potapenko and Ivan Turõgin were insufficient.
New action in HashFlare file
According to the information conveyed, the funds were first sent to two separate recipient addresses, and then started to move through HiFiSwap and Near Intents. Researchers noted that assets have begun to be converted from Ethereum to Bitcoin. While on-chain researcher ZachXBT was one of the names that announced the transaction to the public, security company Cyvers also contributed to the detection of the activity.
Mini dictionary: On-chain research refers to tracking the flow of funds by examining open transaction records on the blockchain. Instant swap platforms are structures that allow users to quickly convert assets between different networks or assets without a classical order book.
It was reported that 10,600 ETH from the HashFlare-connected wallet was distributed to two addresses and then moved through instant exchange platforms, and the funds began to be converted from Ethereum to Bitcoin.
According to the data shared in the news, the address associated with the transaction is 0xff575a22975cc413771825eb84c163189a4d5d22, and the transaction ID is 0xd0eafd5c03b24c2f54c579745cacbffe4c6df2d19973e55d52a5f40aa1d89e0. It was recorded as.
| Pen | Detail |
|---|---|
| Amount transferred | 10,600 ETH |
| Approximate value | $18.5 million |
| inactivity time | Approximately 3.5 years |
| Direction | Ethereum to Bitcoin conversion |
What was HashFlare?
Launched in 2015, HashFlare was a platform that promised its customers a share of cryptocurrency mining by selling cloud mining contracts. The startup raised more than $577 million from nearly 440,000 investors around the world between 2015 and 2019, according to court records.
However, according to the case file, the platform did not have the processing power at the scale it claimed. In the documents, it was stated that the system operated at approximately 1 percent of the Bitcoin mining capacity claimed. The online panels shown to customers contained fabricated performance data and returns that did not actually exist.
The US prosecutor’s office’s file included the assessment that the cryptocurrency mining activity shown to investors was actually just a mirage.
It was stated that when investors wanted to withdraw money, the founders made payments by purchasing Bitcoin from the exchanges, therefore the structure turned into a fraud scheme that meets old demands with new money. The prosecutor’s office also alleged that Potapenko and Turõgin used investor funds for real estate, luxury cars, expensive jewelry and private jet trips. It was reported that the duo raised at least another $25 million with the promise of a blockchain-based bank through a separate initiative called Polybius, but there was no bank established or dividends paid.
The appeal process against the sentence continues
Sergei Potapenko and Ivan Turõgin pleaded guilty to conspiracy to commit wire fraud in February 2025. U.S. District Judge Robert S. Lasnik sentenced the duo to 16 months in prison; It was stated that this period was covered by the period spent in custody. They were also sentenced to a $25,000 fine, 360 hours of community service and three years of probation in Estonia.
Federal prosecutors had requested 10 years in prison for both defendants. Judge Lasnik said the decision was a difficult sentencing assessment due to concerns about extradition and transfer processes. Prosecutors filed a formal appeal in late August 2025 on the grounds that the sentence was too lenient. The news also included information that the victims are expected to be fully compensated for assets worth over $400 million seized within the scope of the plea agreement, but the US Department of Justice has not yet announced the distribution schedule.
