BitRiver, the infrastructure provider mining Bitcoin in Russia, wants to appeal against the US Treasury after the sanctions issued against it. In fact, the American foundation claimed that it had helped Moscow circumvent international restrictions due to the war in Ukraine. BitRiver strongly denies these allegations.
BitRiver, the attacker counterattacked
Last Wednesday, BitRiver announced its intention to sue the U.S. Treasury for claims ” false “and” without foundation which resulted in penalties.
This Swiss-registered company believes that these sanctions would not be justified because it is a private company and not a federal entity. In fact, she indicated that she ” it does not in any way help the Russian Federation circumvent the sanctions “.
Why BitRiver intends to turn the case against the Treasury and accuse it of lobbying on behalf of the industry mining American. In addition, this American institution would encourage unfair competition that violates World Trade Organization (WTO) rules.
BitRiver CEO Ignor Runets explains:
” Market participants are well aware that these actions by the US government are an attempt to push the global balance of power in favor of US companies and drive the largest Russian player, BitRiver, out of the market. »
The same Runets also indicated that market actors in the US, EU, Russia, China and the CIS could support these potential efforts.
Here is the translation of the BitRiver tweet from January 26:
“ Russian President Vladimir Putin said that Russia has competitive advantages in the mining sector thanks to its qualified personnel and its surplus electricity. Mr Putin called on the government and the Central Bank to reach a consensus decision on the regulation of cryptocurrencies in Russia. »
Russia, good for encrypted mining
Russia is strong with a cold climate and cheap energy. This favors the establishment of data centers and mining companies.
For BitRiver, it takes care of the management of the data centers intended to host third-party encrypted miners, rather than its own devices. Last year, the Russian company transferred its assets to a Swiss – based holding company. And that does not stop him from managing a data center in Russia at the moment.
If the US Treasury decided to approve BitRiver, that’s why it maintained links with the already sanctioned oligarch, Oleg Deripaska. Through its branch Office of Foreign Asset Control (OFAC), attacked the Conradh na Gaeilge company mining for the following reasons: to sell its mining potential internationally and, as a consequence, to help Russia make money on its natural resources.
The sanctions issued against BitRiver relate to:
– blocking listed persons and entities from accessing US – owned or resident US assets;
– prohibition of transactions conducted by Americans and residents of the United States, relating to property and interests of sanctioned entities / persons;
– obstruct any contribution or provision of funds, goods or services by the approved persons and entities, for his or her benefit.
In addition, BitRiver believes that these sanctions have damaged its public image, disrupting the company and its activities internationally.
Finally, we would like to remind you that Deripaska, the Russian oligarch linked to BitRiver, was already approved in 2018. He is the current owner of the building in which he rents premises. Many other information, such as the creation of Bit +, a merger between EN + (from Deripaska) and Bitriver, came into the hands of the US Treasury. Hence the penalties. As for the rulings of the judge, time will tell which of the two is right.
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