Former Employee Reveals: Ukrainian Tycoon's Steel Plant Lays Off Workers, Ventures into Bitcoin Mining Business

According to foreign media reports, a long-standing steel foundry located in Kentucky, USA, owned by Ukrainian billionaire Ihor Kolomoisky, has closed down following the impact of the COVID-19 pandemic. However, former employees have pointed out that the factory's equipment is still operational, specifically for Bitcoin mining machines.

Transition to Bitcoin Mining

This news is based on a report from Radio Liberty, indicating that the 70-year-old steel foundry CC Metals & Alloys (CCMA) in Kentucky, USA, has transitioned into a Bitcoin mining operation, as reported by retired employees.(source). CCMA was acquired for $188 million in 2011 by Ukrainian tycoon Kolomoisky and his business partner Gennady Bogolyubov. Kolomoisky also owns seven steel foundries across five states in the U.S.

Apparently, CCMA has been affected by the COVID-19 pandemic. The factory's union leader announced last month that workers would be laid off by the end of the year, leaving many employees surprised. Retired former factory union chairman Stan Berkin, who retired in 2018, mentioned that a round of layoffs occurred in July, and those individuals have yet to find new jobs. Berkin stated:

"The factory used to operate normally, even when industrial metals dropped, they could shut down certain production lines until prices rose again. But I have never seen a situation where all production lines were shut down. Currently, the factory is filled with 'mining machines,' a production that is unrelated to the factory's core business and is unaffected by the layoffs."

Ukrainian Oligarch Ihor Kolomoisky

Ihor Kolomoisky is a business oligarch and billionaire in Ukraine, holding a net worth of over $1.1 billion. He was the former owner of PrivatBank (now state-owned) and has also served as a regional governor in the country.

Kolomoisky seems to have a close relationship with Ukraine's "comedian president" Volodymyr Zelensky. The comedy series "Servant of the People," produced by Kolomoisky's media group, featured the current President Zelensky, leading some to believe that the president is merely a puppet of the oligarchs.

Besides the pandemic impact, Kolomoisky is facing legal challenges in the U.S. this year. The U.S. Department of Justice has accused him of fraudulently obtaining loans from PrivatBank between 2008 and 2016 and using the funds for real estate investments and corporate acquisitions in the U.S.

Of course, the tycoon denies these allegations, claiming that the $2 billion was raised by selling his late 2000s steel business in Ukraine.

Previously reported, Ukraine is considered a friendly country for the mining industry, advocating for unregulated mining policies. In May of this year, there was a proposal to use excess electricity from the country's nuclear power plants for cryptocurrency mining.