Estonian citizen charged for fraud in cryptocurrency mining case released from custody

COBALT defended Ivan Turõgin, an Estonian citizen, who has been providing cryptocurrency mining services and is sought by the United States for extradition. The extradition proceedings started in November 2022. US authorities allege that the Estonian businessman, along with his business partner, had cheated out USD 575M from customers. At the request of the US, the court seized assets worth 145 million US dollars and the entrepreneurs were taken into custody with the permission of the court, which lasted for more than a year. The extradition arrest ended with the client’s release last Friday, January 12, 2024, under electronic surveillance, which is the first time in Estonia.

This case is significant because it has resulted in an important decision of the Supreme Court (1-22-7101), which changed the existing case law. According to the practice of the Supreme Court for the last ten years, there was no other less lenient alternative to the arrest of a person whose extradition is sought. However, in the course of the current proceedings, the Supreme Court, with the votes of judges 4:2, took the position that it is also possible to apply less restrictive measures such as electronic surveillance or bail. Thus, on January 12, Ivan Turõgin was released from extradition detention under electronic surveillance. According to legal experts, this is one of the most important court cases in 2023. It is also the longest extradition proceedings in Estonia.

COBALT’s Senior Associate Karl Kask advised and represented the client in all cases related to arrest, seizure of assets and extradition. In addition, the team included Managing Associate Rauno Ligi, Junior Associate Norman Ilumets and Assistant Lawyer Alina Laansoo.

References for this case in Estonian can be found HERE, HERE and HERE.