The U.S. sanctioned Russian cryptocurrency miner Bitriver and its 10 subsidiaries on Wednesday, in an attempt to further isolate Russia from the global economy for invading Ukraine.
See related article: Russia proposes Bitcoin payments for oil and energy exports
Fast facts
- “Russia has a comparative advantage in crypto mining due to energy resources and a cold climate,” the U.S. Department of the Treasury said in a Wednesday statement. “However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions.”
- The U.S. government’s move reinforces recent efforts to cut Russia from channels that could facilitate sanctions evasion.
- Earlier this month, the Treasury sanctioned a Russian darknet market and a related crypto exchange associated with ransomware activities.
- Russia proposed Bitcoin and national currencies as payment options for energy exports last month.
See related article: Is cryptocurrency a workaround for sanctions against Russia?