Oligarch Igor Kolomoisky organized Bitcoin Mining at the USA Factory

Kataryna Habeliia December 14, 2020

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Oligarch Igor Kolomoisky organized bitcoin mining at the USA factory

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The premises of the CC Metals & Alloys (CCMA) steel plant in Kentucky, owned by Ukrainian oligarch Igor Kolomoisky and his business partners, has a data center where a third party mines cryptocurrencies. The financial terms of the deal were not disclosed. This is reported by Radio Liberty.

The 70-year-old plant halted operations in July and plans to lay off the remaining workers by the end of 2020. The only thing that works on the huge territory of the plant is bitcoin mining farms, employees of the enterprise say. One of the warehouses is filled with mining equipment while the main production of the plant is at a standstill.

“Computers were brought there in whole trucks,” said one of the factory workers on the basis of anonymity.

Cryptocurrency production operates independently of the plant itself and has not been affected by the cutbacks, workers say.

A CCMA spokesperson said in July that the plant invited a third party to host a computer center based on the plant, working in the field of artificial intelligence and blockchain technology — to diversify revenues. She did not specify who the third party was and did not provide financial details of such an arrangement.

“Both artificial intelligence and blockchain are energy-intensive industries and are expected to grow exponentially over the next decade and occupy a $ 20 billion market. Based on the success of the first pilot, we can expand this line of business. CCMA considers it prudent to have multiple sources of income ” — said the press secretary.

Other mining farms in the Tennessee Valley

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The CCMA cryptocurrency computing center is just one of about five that have sprung up in the Tennessee Valley in recent years thanks to the region’s large amounts of cheap electricity, Radio Liberty added.

Some of the workers speculated that the main reason for the owners’ reluctance to restart the plant may be pressure from the US Department of Justice.

US Department of Justice filed a civil lawsuit against Igor Kolomoisky

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We will remind, in August 2020, the US Department of Justice filed a civil suit against Igor Kolomoisky and Gennady Bogolyubov. They are accused of having withdrawn billions of dollars through fictitious loans from Privatbank, which they owned at that time, between 2008 and 2016.

Prosecutors say most of that money is in US investments, including commercial real estate in Texas and Ohio, steel mills in Kentucky, West Virginia, and Michigan, and a mobile phone factory in Illinois.

Assistance in the purchase of assets was provided by partners of Kolomoisky and Bogolyubov from Miami — Mordechai Korf and Uriel Laberi, who now hold the position of managers of the CCMA plant.

The oligarchs themselves deny these charges. The FBI continues to investigate.

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