Key Takeaways:
Defense lawyers say the deportation warnings contradict court-ordered conditions requiring the men to stay in Washington state.
The defendants plan to ask for time served and return to Estonia after sentencing.
Their attorneys raised concerns about miscommunication between DHS and the court.
Two Estonian men who pleaded guilty to running a large-scale crypto fraud scheme say U.S. immigration authorities have ordered them to leave the country in defiance of a federal court’s instructions.
In a letter to the court on April 11, attorneys for Sergei Potapenko and Ivan Turogin said both received emails from the Department of Homeland Security instructing them to depart “immediately” or face enforcement action.
Deportation Threat Contradicts Court-Ordered Stay
According to the letter, Potapenko and Turoginare are under bond conditions requiring them to remain in King County, Washington, until their sentencing on August 14.
They were extradited from Estonia in 2023 and pleaded guilty to one count of wire fraud conspiracy in February.
They are expected to ask for time served and return to Estonia following sentencing. Their legal teams say the DHS warnings contradict the court’s jurisdiction and could risk premature removal.
“It is time for you to leave the United States,” the email reads. After the defendants’ attorneys contacted the prosecution team regarding the message, they soon received another message declaring “do not attempt to remain in the United States — the federal government will find you.”
“Ivan’s and Sergei’s families are visiting from Estonia, and it would be unfathomable for them to be detained in front of their families,” the letter stated.
Attorneys said they’ve contacted prosecutors, who assured them DHS would be asked to address the issue.
But a second warning email sent to Turogin renewed concern, prompting the defense to consider requesting a hearing with DHS counsel present.
Tensions Raise Over Jurisdiction and Due Process
Prosecutors allege Potapenko and Turogin defrauded investors of $577 million through a sham crypto mining service and a fake digital bank.
Their companies allegedly recycled investor funds to pay out earlier participants, despite lacking actual mining operations.
In the announcement published by the Department of Justice in February, Potapenko and Turogin agreed to forfeit $400 million as a part of the guilty pleas.
The DHS emails could point to a deeper issue as gaps occur between immigration enforcement and the judiciary in high-profile international cases.
When agencies act out of sync, even convicted fraudsters can fall through the cracks of process and protocol.
At the same time, the case shows a broader challenge in crypto enforcement—tracking accountability across borders without undermining due process.
As financial crimes grow more transnational, the machinery built to prosecute them struggles to stay aligned.
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