Georgian news agency Agenda reported on thursday George Bakiashvili, the founder of the Georgia Joint Investment Fund, known for running a $6 billion private equity fund that contributes about 40% of the country’s GDP, is on the verge of cryptocurrency diversion and money laundering. It was revealed that he had been charged with ring crimes.
The Georgia prosecutor’s office alleges that Bakiashvili has misappropriated a “large amount” of cryptocurrencies, especially bitcoin, dating back to actions taken in 2015.
Bakiashvili, formerly recognized by Forbes 30 Under 30 – Finance (2014) evaluates the role in managing a fund backed by the billionaire prime minister of Georgia, who uses funds “privately” raised by the prime minister and an unidentified investor to mine bitcoin. reportedly invested. The funds were used to secure mining services from foreign companies under a one-year contract worth $6.3 million, with an investor’s cut of $5 million.
As reported by Agenda, the mining operation generated 24,662 BTC within a year, leading to a profit of 8,253 BTC. This profit was to be divided between the investor and Mr. Bakiashvili according to the amount invested and accumulated in a cryptocurrency wallet owned by a company under Mr. Bakiashvili’s control.
However, according to Agenda, the prosecutor’s office alleges that Bakiashvili only paid out a fraction of the profits to investors in 2017 and diverted the profits by hiding the details of the remaining stolen bitcoins worth more than $39 million. ing.
However, at the time of writing, 8,253 BTC was worth $251 million, suggesting the figures used by the Georgian authorities represent the value at the time of the alleged crime, not today’s valuation. doing.
Bakiashvili’s actions, including the cover-up of unauthorized cryptocurrency transactions, have had significant legal ramifications. Agenda reported that he could face nine to 12 years in prison if convicted of cryptocurrency diversion and money laundering charges.
Despite the controversy, the Georgian Joint Investment Fund was not involved in Mr Bakiashvili’s alleged actions, indicating that he could not comment further on the investigation due to his previous role on the audit committee. issued a statement.
Georgia prosecutors have reportedly indicted billionaire George Bachiashvili on charges of misappropriating Bitcoin funds, money laundering first appeared on CryptoSlate.