US Penalizes Crypto Mining Host Bitriver AG and Russian Banks -Breaking
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US Penalizes Crypto Mining Host Bitriver AG, Russian Banks- The US Treasury has penalized Bitriver AG, 10 subsidiaries and the Bitriver AG as the first crypto-mining companies.
- 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.”
New restrictions were imposed by the United States on Wednesday for individuals and organisations that are accused of trying to escape Russian sanctions.
US Treasury issued a warning that Bitriver AG in Switzerland was being penalized for its activities within the Russian technology sector. It currently has three locations in Russia, despite having transferred its legal ownership to Switzerland last January.
Today, the U.S. is targeting Russian financial and operational support networks that attempt to evade international sanctions.https://t.co/a59UJKRaQJ
— Treasury Department (@USTreasury) April 20, 2022
According to Treasury, this holding company was identified by the Office of Foreign Assets Control under 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. According to the Treasury, these subsidiaries are meant to reduce economic sanctions through large-scale servers selling bitcoin around the world.
Brian Nelson, Secretaire for Terrorism and Financial Intelligence, advised 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. This helps Russia to monetize its natural resource by supporting it with massive server farms which allow them to sell their virtual currency mining capacity globally.
Russia holds a strong competitive advantage in crypto mining. The importation of computer equipment and money payments by mining companies is what makes them vulnerable to sanctions.
Related news: The Department of Justice indicted Russian bank Transkapitalbank and over 40 other people and companies that he managed, earlier this month for allegedly violating the sanctions.
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