Bitriver, one of the country’s top crypto mining firms, asserted that it did not assist the Russian government in evading international sanctions.
BitRiver, Russia’s largest data center services provider, is considering suing the US Treasury Department for placing the business on the sanction list last month. Furthermore, the corporation accused the US of violating WTO regulations by fostering unfair competition and advocating for the US mining industry.
BitRiver described the US claims as “unfounded and untrue”
BitRiver said in a press statement that it is a 100 percent private corporation with no ties to the Russian government, thereby denying any involvement in assisting the Kremlin circumvent sanctions. It further claimed that the improperly imposed fine had resulted in “direct reputational harm” to its activities.
The Treasury Department slapped sanctions against BitRiver on April 20th, banning the company from doing business with US residents. The authority stated that Russia has major “comparative advantages” in crypto mining, citing worry that people or businesses may use cryptocurrencies to circumvent sanctions.
In the announcement, BitRiver rejected this claim, stating that it has always followed corporate governance and complied with the regulations in its operating locations. The business boasted about its strong AML/KYC compliance, claiming that its experience of operating in Russia and other jurisdictions had triggered no red flags with regulators.
The Treasury Department’s punishment, according to BitRiver, is intended to defend local enterprises. The Russian mining behemoth described the US action as “irresponsible,” stating that neither the legal foundation nor solid rationale could support such a move.
Despite the suspension issued, BitRiver maintained that the facility continues to operate regularly and connect with overseas clients:
“At present, all enterprises, production sites and offices of BitRiver in Russia are operating as usual. The company continues to provide services to international clients who have confirmed their further cooperation and these are the majority.”
The IMF has warned about sanction evasion through cryptocurrency
Before the US government sanctioned BitRiver, the IMF cautioned that Russia might use cryptocurrencies and considerably grow its mining business to avoid economic consequences. The worldwide authority also stated that mining for energy-intensive blockchains such as Bitcoin might allow countries to monetize energy resources, some of which are prohibited from export owing to sanctions.
On the other hand, the crypto sector assumed that using digital assets like Bitcoin to escape sanctions was fiction. In a recent interview, Binance CEO CZ said that “nobody clever” would select crypto for such a transaction since it is “too traceable,” and governments are becoming more adept at tracing such transactions.