Russian Authorities Reveal Illegal Crypto Mining

Russian authorities are cracking down on illegal crypto mining in Siberia. (Photo; Doc. Marketscale)

JAKARTA - Crypto mining around the world has mushroomed. However, illegal crypto-mining activities are increasingly being discovered by authorities in various countries, including Russia. These illegal crypto-mining actors use illegitimate resources such as electricity and equipment to carry out their operations.

As a result, authorities across the country have been cracking down on these illegal coin mining facilities, including seizing the equipment and filing lawsuits against the perpetrators. This crackdown comes at a time when there are talks to introduce criminal liability for miners who violate upcoming laws for the crypto industry.

Russian police and power supplies have dismantled several illegal crypto mining installations in Siberia and the south of Russia, citing local crypto news sources. In one of the cases, the organizers of a mining company have been accused of stealing large amounts of electricity.

Rosseti North Caucasus employees discovered a large improvised mining facility in the Shpakovsky district of Stavropol Krai. Together with law enforcement, they seized 66 ASIC mining machines, the regional power company announced on Friday.

A similar installation was discovered in the attic of a school in the town of Shelekhov, Irkutsk Oblast, when police were responding to a report from the local power company about abnormal electricity consumption and noise coming from the roof of the building. Officers seized 25 mining units that had been installed by the school's electrician and his friend who is an IT specialist.

Such cases are quite common in the Siberian region, dubbed the mining capital of Russia, where many people mine in cellars, garages, and dachas, trying to make a profit by using electricity subsidies in residential areas.

According to reports in February, more than 1,000 lawsuits have been filed against crypto miners in Irkutsk. These latest cases of Russian authorities cracking down on unlicensed mining come as lawmakers and government officials prepare to resubmit revised bills to regulate the activity.

The amendments that introduced criminal liability and harsh penalties for tax-evading “gray” miners caused a backlash from the crypto industry. In a more recent case, a villager in Nadezhda, who placed equipment in his house and connected it to the power grid, may face criminal responsibility for operating an underground facility.

Electrical engineers estimate that the facility consumes 954,000 kWh of electricity with a value of over 6 million rubles ($78,000). With many illegal mining operations in Russia, the authorities are expected to closely monitor this activity and crack down on illegal actors to strengthen the regulation of crypto mining in the country.