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According to media reports, at the end of January in Kropivnitsky, employees of the Security Service of Ukraine (SBU) seized an unspecified number of devices used for cryptocurrency mining from a site owned by the mining Express data center. Information about the search was confirmed by Sergei Smirnov, a partner at law firm Sayenko Kharenko.

According to the lawyer, the investigation operation lasted four days.

Several independent market sources have confirmed to local media that the search was conducted at Mining Express.

The press service of the Kirovograd Regional Police told ForkLog that the operation was carried out by the SBU.

ForkLog requested comments from representatives of SBU, Mining Express and a law firm.

According to court documents, Ukrainian Mining Express has been under pretrial fraud investigation since May 2021.

The first search of the data center was conducted on June 7-8. Investigators then found that

  • Bottom: 4880 Nvidia P102 GPUs for mining.
  • Second: 4543 systems, of which 506 P102 graphics cards, 3018 P102 Bokka Serv GPUs and 1019 Kenweiipc AntMiner power supplies.
  • The third: P106, P102 Bokka Serv and P102 Cryptocurrency Mining System, and 2086 mining farms with graphics cards.

They also found notebooks, rough notes, computer equipment, and network equipment.

On June 15, 2021, the Pechersky District Court of Kiev arrested the equipment belonging to Mining Express. The property was transferred to the custody of the head of the IT department of Mining Express LLC.

The company tried to challenge the decision, but in October 2021, the Kiev Court of Appeals refused to lift the arrest.

Mining Express was registered in Kyiv in March 2018. Its data center is located in the former canteen building of the Pishmash typewriter factory in Kropyvnytskyi. The company's registered capital of 100,000 UAH was founded by Edelweiss Investment Trading Company from Hong Kong, and the ultimate beneficiary is Carlos Fuziyama, a Brazilian of Japanese descent.

At the opening of the data center, Fujiyama said his mine consisted of 17,000 GPUs and that he had invested more than $100 million in it.

Fuziyama's first partners in Ukraine were entrepreneurs from Ivano-Frankivsk Oleksiy Kolesnyk and Mykola Maksymiv, whom he knew from his international MLM business. Mining Express also uses network marketing in its business model, which operates on a similar principle to the financial pyramid approach.

In December 2020, the Brazilian Securities and Exchange Commission (CVM) initiated administrative proceedings to investigate possible violations by the company. Despite being registered in Ukraine, Mining Express uses a Portuguese-language website in Brazil to advertise and attract local residents to its projects.

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The agency claims that the company is not authorized by CVM to attract clients and offer collective investment agreements in Brazil. Since June 2019, Mining Express has been blacklisted as a local company with signs of financial pyramids.

Carlos Fuziyama was previously the promoter of One Thor Brasil, and in 2015 authorities revealed signs of a financial pyramid, according to local media reports. Afterwards, Fuziyama promoted the D9 Club pyramid scheme. Its activities caused losses amounting to R$200 million (US$37.8 million at the time of writing).

Mikhail Chobanyan, founder of Ukrainian bitcoin exchange Kuna, said in his Telegram channel that in 2018 Carlos Fuziyama applied to Blockchain Hub and provided funding for mining Express PR for the Ukrainian market.

Recall that in June 2019, representatives from Mining Express Data Center reported that they began using the device for cloud video rendering as interest in mining fell.

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