Several Crypto Mining Operations Arrested in Russia – Mining Bitcoin News

Authorities and utilities in several Russian regions have shut down illegal crypto mining farms, confiscating hardware and taking operators to court. The action against minting facilities comes amid discussions over a proposal to introduce criminal liability for miners who break upcoming legislation for the industry.

‘Underground’ Crypto Mining Farms Shut Down Across Russia

Police and energy providers have discovered 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 have been accused of stealing large amounts of electricity.

Rosseti North Caucasus employees found a fairly large makeshift mining farm in the Shpakovsky district of Stavropol Krai. Together with law enforcement, they confiscated 66 SO C mineros, the region’s electric power company Announced on Friday.

A resident of the village of Nadezhda, who placed the equipment in his house and connected it to the network, may now face criminal liability for operating the underground facility. Electrical engineers have estimated that he burned 954,000 kWh of electricity for more than 6 million rubles ($78,000).

Several crypto mining operations arrested in Russia
Source: Rossetti

A similar installation was discovered in the attic of a school in the Irkutsk Oblast town of Shelekhov when police responded to a report from the local utility company about unusually high electricity consumption and noise coming from the ceiling. of the building. The officers seized 25 mining units that had been installed by the school’s electrician and a friend of his who was an IT specialist.

Such cases are quite common in the Siberian region, known as Russia’s mining capital, where many people mine in basements, garages and country houses, trying to make money using subsidized electricity in residential areas. According to a February report, more than 1,000 lawsuits have been filed. archived against domestic cryptominers in Irkutsk.

This week, the Prosecutor’s Office in Tomsk, another Siberian oblast, announced that it approved the indictment in a criminal case against seven local residents who organized to illegally connect various premises with crypto mining equipment to the network. They are accused of causing damage to the energy supplier with an estimated value of 24 million rubles (more than $310,000).

The latest examples of Russian authorities clamping down on unauthorized mining come as lawmakers and government officials prepare to Resend a revised bill designed to regulate the activity. The amendments introducing criminal liability and hard sorrows for so-called “grey” miners who evade taxes provoked reactions of the crypto industry.

tags in this story

crack down, crypto, crypto farm, crypto miners, crypto mining, CRYPTOCURRENCIES, cryptocurrency, electricity, Energy, gray miners, Irkutsk, miners, mining, mining farm, police, Force, Russia, Russian, Stavropol, Tomsk, underground farms, utilities

Do you think the Russian government will continue to crack down on underground crypto miners? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quote: “Being a writer is who I am, more than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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