Harrisburg, PA – Investor Education and Consumer Outreach staff from the Pennsylvania Department of Banking and Securities (DoBS) will host a series of free educational events across Pennsylvania in May to help seniors and members of the public protect themselves from financial fraud, identity theft, and scams.
The May outreach events will provide practical guidance on recognizing warning signs of fraud, protecting personal information, and knowing where to turn for help. All events are open to the public unless otherwise noted.
To learn more about our free, non-commercial financial education programs or request a customized presentation, visit the DoBS Events Calendar or contact the team at 1-800-PA-BANKS or via email at informed@pa.gov. You can visit pa.gov/dobs, subscribe to the department newsletter, or follow DoBS on Facebook, X, or LinkedIn.
Pennsylvanians are also encouraged…
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