SBI Crypto has reportedly cut ties with Russian Bitcoin mining company BitRiver

The Japanese crypto mining operator SBI Crypto has reportedly cut ties with the Russian mining company BitRiver — after pressure from Washington-based lawmakers.

As reported, US diplomats last month contacted Japanese firms and regulators to complain that “several” Japanese crypto exchanges were still operating in aggressor state Russia, as well as a number of mining rigs. Some Japanese firms have set up rigs in Siberia, taking advantage of low energy prices and minimal cooling costs. Others have partnered with Russian firms, which have operated mining centers on behalf of Japanese clients. One such firm is believed to be BitRiver, which operates in the cryptomining center of Bratsk, in Irkutsk Oblast (Southeastern Siberia).

However, the US diplomats have warned these Japanese firms that they risk violating international sanctions if they fail to cut ties with Russia and Russian firms.

A number of crypto players have responded to these calls from US lawmakers, which were then echoed by Japanese regulators. SBI Crypto announced earlier this month that it would be ending all of its Russia-based mining operations.

A representative of SBI GroupSBI Crypto’s parent company, announced that the firm “has already stopped all production in Siberia,” adding that the firm was “not engaged in mining operations in the rest of Russia.”

But according to “two sources familiar with the matter” who spoke to the media Coindesk, it appears that SBI Crypto has been working with BitRiver.

Neither SBI nor BitRiver confirmed or denied that they had worked together. But in 2019, SBI Crypto unveiled details of two foreign mining projects, at least one of which was said to have been located in an extremely cold and northern region.

Mining pool data compiled by BTC.com, a mining pool business, indicates that SBI Crypto’s Bitcoin (BTC) mining hashrate, or computational power, has taken a tumble since April of this year – coinciding with the Washington-led sanctioning of BitRiver. The United States has accused BitRiver of “helping Russia to make money from its natural resources” – thereby financing the conflict with Ukraine. The company denies these claims.

Shortly after this announcement, the SBI further revealed that it had been working in Siberia, claiming that it had suspended operations after the start of the war.

The Coindesk sources claimed that the sanctions had “bitten” SBI Crypto directly and that the Japanese firm had been “hosting its mining machines on BitRiver” powered facilities.

This could mean that SBI-owned rigs are still in Siberia, rendering them useless – and potentially unsellable. In April, Cryptonews.com reported that the American mining company Compass Mining hoped to sell $30 million worth of mining hardware to Russian buyers in Russia in an attempt to avoid possible EU and US sanctions.
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Learn more:
– Ukraine celebrates Independence Day: BTC 600 & ETH 10K donated; Russia-connected wallet blocked
– The securities giant SBI picks up a controlling stake in one of its crypto rivals, BITPoint

– Bitcoin mining difficulty is estimated to see the highest jump since January
– The Impact of Crypto Winter on Bitcoin Miners