BitRiver and En+ have entered into a 1.2 billion ruble legal dispute over disagreements in a joint cryptocurrency mining project.
Russia's largest operator of mining data centers #BitRiver has found itself at the center of a legal dispute with its former partner, the energy company En+. According to Kommersant, En+ structures have filed lawsuits against BitRiver for more than 1.2 billion rubles, of which more than 950 million rubles have already been recovered. Another claim for 250 million rubles is under consideration. BitRiver has announced its intention to challenge the claims in court.
The conflict is related to the Bit+ joint venture created in 2020 to develop cryptocurrency mining in the Irkutsk region. En+ provided #electricity for the mining facility in Bratsk, while BitRiver managed operations.
The reasons for the disagreement were not disclosed, but experts speculate that it could be due to financial obligations, rising electricity prices, or US #sanctions imposed on BitRiver in 2022. These restrictions could have complicated the project's operations and influenced En+'s decision to reconsider the partnership.
The dispute could have serious consequences for both companies. For BitRiver, the recovery of a large sum threatens its financial stability and plans to expand into BRICS countries, while En+ risks its reputation due to its failed entry into the cryptocurrency sector.
The conflict underscores the difficulties of developing the mining industry in #Russia amid sanctions and increased #regulation, including a new mining law from August 2024. Litigation is expected to continue and the outcome could affect the cryptocurrency market in the country.
