• A 47-year-old man from Orenburg, a southwestern city near Russia’s border with Kazakhstan, has been sentenced to four years in prison for crypto mining-related fraud.
• The court heard that the man had duped a local entrepreneur into investing in a mining project and promised profits by buying and reselling mining hardware.
• The man was ordered to pay the entrepreneur full compensation and fined just under $4,300.
Russian Crypto Mining Fraudster Sentenced to Four Years
A Russian man has been sentenced to four years in prison for crypto mining-related fraud. The 47-year-old resident of Orenburg, a southwestern city near Russia’s border with Kazakhstan, had duped a local entrepreneur into investing in a crypto mining project. He promised the entrepreneur profits by buying and reselling crypto-mining hardware.
Project Failed To Deliver On Any Promises
The court heard that the entrepreneur had given the man some $108,000 of his own money to invest in the project – as well as an additional $172,000 investment from a company founded by the entrepreneur. However, none of these promises were fulfilled and no cryptocurrency mining equipment was delivered – leaving both parties out of pocket.
Court Finds Man Guilty Of Two Counts Of Fraud
Despite pleading not guilty and claiming he had “no intention” of deceiving anyone, the court ruled otherwise and found him guilty on two counts of fraud. In addition to his four year sentence, he was also ordered to pay full compensation to both the entrepreneur and his firm – as well as a fine of just under $4,300.
Crypto Mining Popular Across Russia And Beyond
Crypto mining has become increasingly popular across many parts of Russia – particularly in areas such as Irkutsk where industrial crypto mining is growing rapidly due to its low energy prices. Additionally, there are numerous gas powered crypto mining projects being launched at oil drilling sites across Russia’s borders in Kazakhstan.
Criminals Targeting Crypto Miners On The Rise
Unfortunately this popularity has made it an attractive target for criminals too; earlier this year three individuals were arrested for scaling their neighbor’s balcony to steal 30 video cards from his cryptocurrency rigs!