Russian Crypto Mining Giant Bitriver Considers Challenging US Sanctions – Mining Bitcoin News

Russia’s Bitriver, one of the largest operators of crypto mining data centers, may take legal action against the U.S. over the decision to place it under sanctions. According to the company, it is not helping Russia’s government circumvent international sanctions.

Bitriver Resists the US Charges as Unfounded. There is no Legal Basis for Sanctions

Bitriver, a leading Russian mining company is looking at filing a suit against the U.S. Treasury Department. The Treasury Department recently identified the Swiss-registered firm and several affiliated entities as part of a new round sanctions targeting Russian individuals and businesses. Russia’s coin minting potential was specifically targeted with the new penalties imposed over the war in Ukraine.

Bitriver said that because the allegations are false, the actions taken by the department were damaging the company’s reputation and its international business. It is convinced that there are no legal grounds to the restrictions, and will demand the American authorities take it off the blacklist. The company also stressed:

Bitriver, which is not an agency of the government but 100% private corporation that does not aid Russia to bypass sanctions, cannot be considered a government agency.

Additionally, the Russian group claims that the Treasury is guilty of lobbying and unfair competition for U.S. mines. This violates rules set forth by the World Trade Organization. Bitriver CEO Igor Runets describes the department’s move as “an attempt to change the global balance of power in favor of U.S. companies and remove the largest Russian player from the market.”

Bitriver says that all production sites and offices located in the Russian Federation continue to operate normally, despite these restrictions. International clients continue to receive services from Bitriver. They have confirmed that they are willing to work with Russian Bitcoin mining operation.

The West’s allies have imposed several sanctions against Russia which limit its global financial and foreign reserve access. Some have raised concerns that Russian citizens, and their government, may be using cryptocurrencies to bypass the restrictions. Officials in Moscow have highlighted Russia’s competitive advantages for mining in terms of cheap energy resources and cool climate. The parliament received a draft of a law to regulate the sector in April.

Is Bitriver able to challenge the U.S. sanction against it? Please comment below with your views.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.