OLYMPIA, Wash. — Washington state officials say a recent audit that found an estimated $37 million in questionable child care subsidy payments did not uncover reportable fraud, even as lawmakers and the public press for answers about how the money was distributed.
The Washington Department of Children, Youth and Families (DCYF) said it has not referred the audit findings to the Office of Fraud and Accountability (OFA), and added that the cases did not rise to the level of suspected fraud or intentional deception.
“An overpayment does not automatically mean fraud,” the agency wrote in an email to KOMO News. “The [State Auditor’s Office] and DCYF did not find anything that needed to be referred to the [OFA].”
State Auditor Pat McCarthy told KOMO News last Monday that auditors did not find any “conclusions of fraud,” but said that if DCYF has concerns, it can forward any findings to the…
CLICK HERE to read the FULL DCYF says no reportable fraud linked to state audit – KOMO News article.
THE HASHFLARE “CLOUD MINING” PONZI SCHEME (GLOBAL/ESTONIA)
Date: February 13, 2025 (Guilty Pleas) Perpetrators: Sergei Potapenko and Ivan Turogin
Case Description: This $577 million cryptocurrency fraud remains one of the largest digital asset scams in history, with major legal developments concluding in 2025. Potapenko and Turogin operated “Hashflare,” which they marketed as a massive cryptocurrency mining operation. Hundreds of thousands of victims worldwide purchased “mining contracts,” believing they were renting hash power to mine Bitcoin. In reality, the duo was running a sophisticated Ponzi scheme.
They created fake customer dashboards that showed “real-time” mining profits, but the money being paid out was simply the capital of newer investors. They laundered the proceeds through shell companies to purchase luxury real estate and a fleet of high-end vehicles. After a massive international investigation involving the FBI and Estonian authorities, the pair agreed to forfeit over $400 million in assets. This case underscores the “Cyber-enabled Fraud” warning issued by the FATF in early 2026: as technology evolves, the scale of fraud moves from local millions to global billions in the blink of an eye.
Link to Original: ACFE – High Profile Fraud of 2025