A Russian man has been sent to prison for four years for crypto mining-related fraud.
Per the media outlet 56 Orb, the man is a 47-year-old resident of Orenburg, a southwestern city near Russia’s border with Kazakhstan.
A court in the city heard that the man duped a local entrepreneur into investing in a crypto mining project. The man told the entrepreneur that he intended to “buy a range of equipment for cryptocurrency mining.”
The man offered the entrepreneur the opportunity to work as partners. He said the project could accrue considerable profits by buying and reselling crypto-mining hardware to would-be miners.
Many crypto miners are believed to be active in the Russian southwest, an area famous for its low energy prices. Industrial crypto mining has also grown into a large business sector across the border in Kazakhstan.