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US Penalizes Crypto Mining Host Bitriver AG and Russian Banks

U_S_Treasury_Designates_Facilitators_of_Russian_Sanctions_Evasion Cryptocurrency News
  • Bitriver AG and 10 of its subsidiaries are the first crypto mining companies to be penalized by the US Treasury.
  • Russia’s Transkapitalbank and over 40 businesses led by Russian oligarch Konstantin Malofeyev were indicted for violating sanctions.
  • The US took these measures to stop the funding of “Putin’s Brutal war of choice.”

The United States imposed new restrictions on Wednesday against organizations and individuals accused of attempting to avoid the Russian sanctions.

The US Treasury announced that it was penalizing Switzerland-based Bitriver AG for operating in the Russian technology sector. The business currently operates out of three offices across Russia despite shifting legal ownership of its assets to Switzerland last year.

According to the Treasury, the Office of Foreign Assets Control (OFAC) identified this holding company, Bitriver AG, pursuant to E.O. 14024 for functioning or having operated in the Russian Federation economy’s technology sector.

The Treasury also named 10 others of Bitriver’s subsidiaries, claiming that these mining companies assist in monetizing Russia’s natural resources. The treasury claims that these subsidiaries aim to mitigate the impact of economic sanctions by operating massive servers that sell bitcoin worldwide.

Brian Nelson, the Secretary for Terrorism and Financial Intelligence warned that:

Treasury can and will target those who evade, attempt to evade, or aid the evasion of US sanctions against Russia, as they are helping support Putin’s brutal war of choice

The Treasury Department is targeting enterprises in Russia’s virtual currency mining industry. These enterprises assist Russia in monetizing its natural resources by operating massive server farms that sell virtual currency mining capacity on a global scale.

Russia has a competitive edge in crypto mining. Mining firms rely on imported computer equipment and currency payments, making them subject to sanctions.

In related news, Russian bank Transkapitalbank, a global network run by Russian oligarch Konstantin Malofeyev, alongside over 40 people and businesses led by him, was indicted earlier in April by the Department of Justice for allegedly violating sanctions.

Moomal is a content specialist new to the world of Blockchain and Cryptocurrency. She has a passion and knack for content, creative, and research writing. Now, she’s exploring the ever-evolving space, ready to share it to the world as simple as possible.