- Russian crypto mining firm Bitriver has been added to OFAC’s list of sanctioned Russian entities
- The move marks the first time the sector has been targeted in such a way
- Bitriver and 10 of its subsidiaries will now have certain financial activities restricted
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) yesterday included a Russian cryptocurrency mining company in its list of sanctioned entities, the first time the industry has been targeted in such a way. In its latest update, which mainly focused on adding a key Russian bank and over 40 individuals to the growing list, OFAC targeted Russian cryptocurrency mining company Bitriver, claiming that cryptocurrency mining companies “help Russia monetize its natural resources” and have helped the state evade other financial sanctions.
OFAC Says Bitriver Helped Russian State Evade Sanctions
In its update, OFAC noted that Russia has a “comparative advantage in crypto mining due to energy resources and a cold climate.” Despite this, the country still relies on “imported computer equipment and fiat payments, which makes them vulnerable to sanctions.”
Bitriver, which was founded in 2017 and is a major player in what is the third biggest country for cryptocurrency mining in the world, has been targeted by OFAC “for operating or having operated in the technology sector of the Russian Federation economy”. As a result, the company and 10 subsidiaries have now been designated as helping the Russian state evade sanctions and will face a tough time accessing its funds.
Real World Impact Yet to be Seen
The addition of Bitriver to the list of sanctioned companies will have the following impact on the company:
- All U.S.-controlled property and interests in property are blocked and must be reported to OFAC.
- Any entities that are owned, directly or indirectly, 50 percent or more by one or more already blocked persons are also blocked.
- All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt.
Whether such action will have a big impact on Bitriver’s activities remains to be seen, but it certainly marks a new step in America’s financial war against Russia.
