A large Russian mining company faces a legal dispute in St. Petersburg because the three accused the company of fraud. After the city court issued a criminal case order this week, Cryptouniverse will now face trial.
District court refuses to initiate criminal proceedings against company in 2020
According to RBC, the St. Petersburg City Court accepted the appeals of three Cryptouniverse clients-a Bitcoin (BTC) and Litecoin (LTC) miner established in 2018-and held that the case should be conducted before the trial.
Initially, legal proceedings against the company made headlines in August 2020. Businessman Alexei Burik initiated a legal initiative, claiming that Cryptouniverse allegedly embezzled his crypto mining equipment and mined coins worth 25 million rubles ($340,000).
At that time, the Kubyshevsky District Court rejected the police’s decision to file a criminal case for mining fraud, and after the mining company filed an appeal, the three are now involved.
After the Saint Petersburg City Court accepted the request of the three persons, the criminal case was directed against Mikhail Kvasnikov, the general manager of Cryptouniverse, who owns approximately 60% of the company’s shares.
Experts cited by RBC stated that most legal cases against crypto mining farms, such as Cryptouniverse, are related to sudden changes in the terms and conditions of equipment use. Experts say, however, such changes are not beneficial to all customers.
Will the lack of regulation of Russian cryptocurrency mining hinder business development?
But the problem is deeper than it seems. The Russian crypto miners union blamed the high cost of installing crypto mining equipment in the home. Therefore, people are forced to rely on mining data centers indirectly.
According to Maxim Nikolaev, the coordinator of the Russian Crypto Miners Union, the lack of regulation of the crypto mining industry is causing such legal troubles for mining companies to some extent.
In addition, experts say that the lack of a legal framework has opened the door to affecting the profits of crypto mining companies’ customers.
What do you think of the legal proceedings against Cryptouniverse? Let us know in the comments section below.
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