Cryptocurrencies such as Bitcoin and Ethereum have been gaining popularity and adoption on a global scale. The decentralized structure of cryptocurrencies has advantages, but it may also be exploited by criminals for illegal purposes.
Since Russia began a war with Ukraine, a number of sanctions have been put in place. Cryptocurrencies, however, were employed as a workaround to get around these restrictions. The Office of Foreign Assets Control has blacklisted a Bitcoin and Ethereum address connected to the circumvention of sanctions, according to the most recent information from a press statement by the US Department of Treasury.
Igor Zimenkov and his son have been linked to a large group of people and organizations who reportedly attempted to sell military and defense supplies to governments in other countries, according to OFAC.
The information revealed a connection between Jonatan Zimenkov’s two residences and both his father and Rosoboroneksport OAO. The organization that acts as a middleman for Russia’s arms shipments is Rosoboroneksport OAO.
The press release states,
“As part of these efforts, Igor and Jonatan Zimenkov both had direct correspondence with sanctioned Russian defense firms. They have additionally been involved in multiple deals for Russian cybersecurity and helicopter sales abroad and have engaged directly with Rosoboroneksport’s potential clients to enable sales of Russian defense materiel.”
Bitcoin Mining Sector Impacted By Electricity Crisis
As reported by TWJ, according to a recent report from the Hashrate Index, the global energy crisis in 2022 will have an influence on the Bitcoin mining market. Some of the biggest businesses in the sector, including Core Scientific, were on the verge of bankruptcy due to soaring electricity expenses and falling Bitcoin prices.
The paper claims that one of the main factors contributing to the energy crisis and accompanying escalation in electricity prices is a major mismatch between natural gas supply and demand. Due to its flexibility, natural gas is a vital source of energy for the electricity markets and can adapt to increases in demand.
The study also found a link between a state’s power generation mix and how its rates will change in 2022. The worst electricity price hikes were avoided in hydro-rich states like Washington, Oregon, Idaho, and Montana, whereas price increases were greater in states that were predominantly fueled by natural gas.
The research also highlights how critical it is to guarantee a low, long-term electricity price for the mining industry, whether through long-term physical or financial hedging or by gaining access to hydropower that has been left stranded.