US sanctioned Crypto-Mining Firm, Bitriver

The United States has added crypto mining companies to its list of sanctions against Russia to block funding opportunities for its invasion of Ukraine. 

The US Treasury announced on Wednesday that it will impose new sanctions on about 40 Russian companies and individuals, including Bitcoin mining company BitRiver and 10 of its Russian subsidiaries.

Founded in 2017 by Russian businessman Igor Runets, Bitriver provides crypto-mining hosting services and is now headquartered in Zug, Switzerland. Formerly headquartered in Moscow, it employs more than 200 people across three Russian offices and other markets, according to its website.

The Treasury has described Russia's crypto mining industry as the third-largest in the world. This statistic may have been derived from an analysis by the University of Cambridge, which holds a large share of the United States and Kazakhstan. China banned the mining of cryptocurrencies in 2021.

Crypto miners, for example, operate the computer systems that underpin the bitcoin network. They go through an energy-intensive process to solve math puzzles. First to solve these puzzles will be rewarded with cryptocurrencies. Firms like Bitriver accept such miners on a large scale and buy electricity at cheaper wholesale prices.

Other than Bitriver, the Treasury’s list also includes Transkapitalbank, a Russian privately-owned commercial bank, and companies related to Russian oligarch Konstantin Malofeyev.