According to law enforcement officials, George Bachiashvili, who was on Forbes’ “30 Under 30” list, founded a private investment company and raised funds to set up bitcoin mining. Bitcoin mining services were reportedly provided by a foreign firm under an annual contract worth $6.3 million, of which $5 million was raised from outside investors.<br
More than 24,000 BTC were mined during the year, resulting in a profit of more than 8,000 BTC, according to Agenda, citing sources close to the lawsuit. Under the terms of the investment agreement, the profit was to be divided between the investors and Bachiashvili as a percentage of the invested sums.
However, prosecutors allege that Bachiashvili concealed from investors that the foreign mining company “actually” belonged to him and also embezzled profits, paying investors only a small portion of about $536,000. At the time, the amount of bitcoins embezzled exceeded $39 million.. At current prices, the amount of stolen assets exceeded $243 million.
If Bachiashvili is found guilty of misappropriation of cryptocurrency and money laundering, he could face 9 to 12 years in prison.
Earlier, the Georgian government announced the beginning of strategic cooperation with Tether to create a national ecosystem focused on bitcoins and peer-to-peer networks.<br