A major Russian mining company is facing legal trouble in St Petersburg as three people accuse it of fraud. Cryptouniverse will now go to court after the municipal court filed a criminal complaint within a week.

The court refused to prosecute the company in 2020

According to RBC, the St. Petersburg City Court considered the appeal of three Cryptuniverse customers – a Bitcoin Miner (BTC) and Litecoin Miner (LTK) founded in 2018 – and ruled that the case should go to trial.

The first lawsuit against the company hit the news in August 2020. Businessman Alexei Burik has filed a lawsuit alleging that Cryptouniverse hijacked his encryption equipment and the components he obtained for 25 million rubles ($340,000).

At the time, the Kuibyshev District Court rejected the police’s decision to initiate criminal proceedings for the fraud in which the trio are now involved, after the mining company appealed.

As the St. Petersburg court granted the request of three people, the criminal case is directed against Cryptuniverse’s CEO, Mikhail Kvasnikov, who owns about 60% of the company.

Experts quoted by RBC say that most lawsuits against crypto-miners such as Cryptouniverse are due to sudden changes in the devices’ usage conditions. However, according to the experts, these changes are in no way beneficial to clients.

Is the lack of regulation of the Russian cryptography industry bad for business?

But the problem is deeper than it seems. The Union of Crypto Miners in Russia blames the cost of installing crypto units in homes. So people are forced to rely indirectly on mining data centers.

According to Maxim Nikolaev, coordinator of the Russian Union of Crypto Miners, the lack of regulation of the crypto mining industry is somehow the cause of this kind of legal problems with mining companies.

Moreover, according to experts, this lack of a regulatory framework opens the door to influencing the profits of cryptocurrency customers.

What do you think of this lawsuit against Cryptouniverse? Let us know in the comment section below.

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