US Treasury Dept lists crypto mining firm in latest sanctions against Russia
The United States Treasury Department has added Russia-based crypto mining services provider BitRiver and several subsidiaries as firms facilitating the evasion of sanctions.
In a Wednesday announcement, the Treasury Department’s Office of Foreign Assets Control, or OFAC, said it was taking action against BitRiver AG as well as 10 of its Russia-based subsidiaries, naming the companies as ‘Specially Designated Nationals’. Firms and individuals listed as such by OFAC have their assets blocked and “U.S. persons are generally prohibited from dealing with them.”
According to the U.S. Treasury, the actions against BitRiver and its subsidiaries were based on them allegedly facilitating “sanctions evasion for Russian entities,” hinting crypto may have played a role in helping Russia’s government circumvent U.S. economic measures leveled in response to the invasion of Ukraine. The government department said BitRiver operated server farms selling crypto mining capacity internationally, which helped Russia “monetize its natural resources.”
“Russia has a comparative advantage in crypto mining due to energy resources and a cold climate,” said Treasury. “However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions. The United States is committed to ensuring that no asset, no matter how complex, becomes a mechanism for the Putin regime to offset the impact of sanctions.”
Today, the U.S. is targeting Russian financial and operational support networks that attempt to evade international sanctions.https://t.co/a59UJKRaQJ
The latest sanctions followed OFAC warning U.S. residents not to use digital assets to benefit certain Russia-based entities and individuals. In April, the
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