Multiple Crypto Mining Operations Blown Up in Russia – Mining Bitcoin News

Authorities and utilities in various Russian regions have shut down illegal crypto mining farms, confiscated hardware and taken operators to court. The lawsuit against the mints comes amid discussions over a proposal to introduce criminal liability for miners who violate upcoming legislation for the industry.

“Underground” crypto mining farms shut down across Russia

Police and utilities have uncovered and dismantled illegal crypto mining facilities in Siberia and southern Russia, local crypto news outlets reported this week, citing authorities. In one of the cases, the organizers of a mining company were accused of stealing large amounts of electricity.

Rosseti North Caucasus employees found a fairly large improvised mining farm in the Shpakovsky District of the Stavropol Territory. Together with law enforcement, they seized 66 ASIC miners, the regional power company announced on Friday.

A resident of the village of Nadezhda who installed the equipment in his home and connected it to the electricity grid could now be prosecuted for operating the underground facility. Power engineers have estimated that 954,000 kWh of electricity was burned for over 6 million rubles ($78,000).

Multiple crypto mining operations in Russia blown up
Source: Rossetti

A similar installation was discovered in the attic of a school in the town of Shelekhov, Irkutsk Oblast, as police responded to a report from the local utility company of unusually high electricity consumption and noise from the building’s roof. Officials confiscated 25 mining units that had been installed by the school’s electrician and an IT specialist friend.

Such cases are quite common in the Siberian region, dubbed the mining capital of Russia, where many people are mining in basements, garages and dachas, trying to make money on subsidized electricity in residential areas. According to a February report, over 1,000 lawsuits have been filed against crypto miners at home in Irkutsk.

This week, the prosecutor’s office of Tomsk, another Siberian oblast, announced that it has approved charges in a criminal case against seven local residents who organized to illegally connect multiple premises containing crypto-mining equipment to the electricity grid. They are accused of causing an estimated 24 million rubles (over US$310,000) in damage to the electricity company.

The latest examples of Russian authorities cracking down on illicit mining come as lawmakers and government officials prepare to resubmit a revised bill to regulate the activity. Changes that introduce criminal liability and harsh penalties for so-called “grey” miners who evade taxation sparked reactions from the crypto industry.

tags in this story

crackdown, crypto, crypto farms, crypto miners, crypto mining, cryptocurrencies, cryptocurrency, electricity, energy, gray miners, irkutsk, miners, mining, mining farms, police, power, russia, russian, stavropol, tomsk, underground farms, utility

Do you think the Russian government will continue cracking down on underground crypto miners? Do share your thoughts on this topic in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchen’s quote: “Being a writer is what I am, not what I do.” Along with crypto, blockchain and fintech, international politics and business are two other sources of inspiration.

photo credit: Shutterstock, Pixabay, WikiCommons

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