Russian Crypto Miner Bitriver Added to US Sanctions List

The Treasury said it is taking action against other companies in Russia’s crypto mining industry as well

April 20, 2022 04:57 pm

Blockworks exclusive art by axel rangel

The Treasury said Russia’s crypto mining industry helps Putin’s regime evade sanctions
Bitriver provides hosting services and “turnkey solutions” for crypto mining, data management, blockchain and artificial intelligence operations

The US Treasury has added the holding company of Russian crypto miner Bitriver to its sanctions list as part of the continued efforts to tighten capital controls over the war in Ukraine.

Bitriver, which was founded in Russia in 2017 and has three offices across the country, switched legal ownership of its assets to Swiss holding company Bitriver AG last year.

Bitriver provides hosting services and “turnkey solutions” for crypto mining, data management, blockchain and artificial intelligence operations. The Treasury’s Office of Foreign Asset Control (OFAC) is heading the sanctions.

Newsletter

Subscribe to The Breakdown

OFAC said it designated the company, including 10 subsidiaries, under an April 15 executive order by President Joe Biden for having operated within the technology sector of Russia’s economy.

The Treasury also said it is taking action against companies in Russia’s crypto mining industry because they help the country “monetize its natural resources,” according to a Wednesday statement.

Dozens of other individuals and entities — including the privately-owned Russian commercial bank, Transkapitalbank, which the department says is “at the heart of sanctions evasions” — have also been slapped with sanctions.

OFAC is tasked with targeting “financial and operational support networks” over attempts to evade US and international sanctions.

“The United States is committed to ensuring that no asset, no matter how complex, becomes a mechanism for the Putin regime to offset the impact of sanctions,” the department said.

Russia’s February invasion of Ukraine sparked condemnation from Western leaders and their allies who are attempting to strangle Russia’s economy through a raft of sanctions designed to bring President Vladamir Putin to the negotiating table.

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens