Georgian Investor Faces Prison Amid Bitcoin Embezzlement Allegations

Venture capitalist and Mission Gate founder George Bachiashvili is now facing imprisonment in Georgia after a court revoked his bail.

The legal battle centers around accusations that he misappropriated investment funds tied to former Georgian Prime Minister Bidzina Ivanishvili.

Authorities had initially granted Bachiashvili bail set at 2.5 million GEL ($900,000), but reports from the Ministry of Internal Affairs reveal he violated those conditions by traveling to Armenia on March 2. In response, Judge Giorgi Gelashvili ruled in favor of the prosecution’s request for stricter detention, deeming his actions sufficient grounds for incarceration.

The situation has grown more complex, with Georgian media suggesting Bachiashvili has since relocated to a different country. When approached by Reuters, he refused to disclose his whereabouts.

At the heart of the allegations is an investment in Bitcoin mining between 2015 and 2017. Bachiashvili had secured a $5 million loan backed by Ivanishvili’s assets and directed the funds into mining operations through Bitfury. While the loan was repaid in 2016, Ivanishvili contends that Bachiashvili concealed the full extent of the profits, which reportedly included 8,253.13 BTC. A transfer of $536,900 in proceeds to a bank director has also come under scrutiny.

Facing charges of embezzlement and money laundering under Georgian law, Bachiashvili maintains that the accusations lack merit. Transparency International has echoed concerns over the case, suggesting it serves private financial interests rather than justice. The evidence largely consists of financial records and a recorded phone conversation in which Ivanishvili is heard advising Bachiashvili on securing the loan.

His legal defense, led by Amsterdam & Partners, argues that the case is politically charged. Bachiashvili himself claims that his outspoken support for Ukraine in its conflict with Russia has put him at odds with Ivanishvili, who is known for his pro-Russian stance. If convicted, he faces a potential 12-year prison sentence.