Russian Crypto Miner Jailed for 4 Years for Fraudulent Scheme
• A 47-year-old Russian man was sentenced to four years in prison for cryptocurrency mining fraud.
• The man had conned a local entrepreneur out of $280,000 by promising to invest in a crypto mining project.
• In addition to the jail sentence, he was ordered to fully compensate the entrepreneur and pay a fine of nearly $4,300.
Russian Crypto Mining Fraudster Jailed for Four Years
A 47-year-old resident of Orenburg near Russia’s border with Kazakhstan has been sentenced to four years in prison for cryptocurrency mining fraud. The court heard that the man had conned a local entrepreneur out of $280,000 after promising to invest in a crypto mining project.
The man had offered the entrepreneur the opportunity to work as partners on the project with him. He said that buying and reselling crypto-mining hardware could be profitable and asked for $108,000 from the entrepreneur as an investment. The company that the entrepreneur had founded also invested around $172,000 into the project. However, no equipment was delivered and no refunds were given – leaving both parties out of pocket.
Despite pleading not guilty and claiming he had “no intention” of deceiving anyone, the court found him guilty on two counts of fraud and issued a four year jail sentence along with an additional fine of almost $4,300. He was also ordered to fully compensate both the entrepreneur and his company.
Crypto Mining Popularity In Russia
Cryptocurrency mining has become increasingly popular in Russia over recent years; industrial crypto mining is now a large business sector across its border with Kazakhstan – where energy prices are particularly low – while parts of Russia such as Irkutsk have also become hotspots for miners. Unfortunately this popularity has led some individuals down darker paths; three suspects were arrested last year for scaling their neighbour’s balcony and stealing 30 video cards from his mining rigs!
This case serves as yet another reminder of how easy it is for criminals to exploit those looking to get involved in cryptocurrency mining – or any other form of investing – without adequate knowledge or understanding about what they are getting into. It also shows just how seriously these crimes are taken by authorities; if you suspect someone may be trying to scam you then it is crucial that you report them immediately before it’s too late!