Georgian Court Orders Imprisonment of Tech Entrepreneur in Bitcoin Embezzlement Case

Georgian venture capitalist and Mission Gate founder George Bachiashvili faces imprisonment after fleeing to Armenia while on trial for allegedly embezzling Bitcoin worth millions from former Georgian Prime Minister Bidzina Ivanishvili. The court’s decision came after authorities confirmed Bachiashvili violated his $900,000 bail agreement by crossing international borders on March 2.

Judge Giorgi Gelashvili has ordered detention for Bachiashvili, citing the bail violation as justification for stricter measures. According to the Georgian Ministry of Internal Affairs, Bachiashvili has since reportedly entered a third country, though he declined to reveal his location to Reuters.

The case centers on 8,253.13 Bitcoin allegedly misappropriated between 2015 and 2017. Prosecutors claim Bachiashvili, once an aide to Ivanishvili, invested a $5 million loan backed by Ivanishvili’s personal funds into Bitcoin mining operations through Bitfury. The former prime minister alleges they had agreed to liquidate the mined Bitcoin in late 2016 due to market stability concerns.

While Bachiashvili repaid the loan to Ivanishvili’s Cartu Bank in 2016 and later transferred $536,900 in profits to the bank’s director, Ivanishvili contends that Bachiashvili concealed the true value of the mining operation’s returns, which he claims were worth millions.

The charges fall under Articles 182 and 194 of the Georgian Criminal Code, covering misappropriation of property and money laundering. If convicted, Bachiashvili could face up to 12 years in prison.

Transparency International has raised serious concerns about the case, stating that the charges “clearly and explicitly reflect Ivanishvili’s private financial interests.” The organization further noted that the “weakness of the prosecution’s position and the lack of evidence in this case are so evident that, in any legal system based on the rule of law, such charges would not only be inconceivable but would never even reach court proceeding.”

According to Transparency International’s assessment, Bachiashvili maintains that Ivanishvili merely advised him on securing a loan from Cartu Bank, which Bachiashvili then independently invested in Bitcoin mining. The organization points out that the only non-testimonial evidence consists of loan documents and a recorded phone conversation where Ivanishvili suggests Bachiashvili offer higher interest to secure the loan.

Bachiashvili’s legal team, Amsterdam & Partners, has condemned the proceedings. Senior Partner Robert Amsterdam described the case as “a travesty” of due process, stating: “The State appears to be acting in violation of the law at the behest of the capricious wishes of Ivanishvili. It’s not credible for Ivanishvili to claim he’s owed money from an eight-year-old repaid bank loan with no evidence, and then to have the matter pursued with criminal charges instead of a civil case.”

Bachiashvili has suggested the charges are politically motivated punishment for his public support of Ukraine in its conflict with Russia—a stance that allegedly displeased Ivanishvili, whom Transparency International describes as the “real ruler” of Georgia.

With an estimated fortune of $7.6 billion—equivalent to approximately a quarter of Georgia’s GDP—Ivanishvili founded the ruling Georgian Dream party in 2012 and currently serves as its honorary chairman. His significant wealth and political influence have raised questions about the impartiality of Georgia’s judicial system in handling the case.

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