Miner Fined for Hidden Crypto Farm in Russia

The Syktyvkar District Court of the Komi Republic fined a local resident 200,000 rubles for illegally connecting a mining farm to the power grid. The energy supply company estimated the damage at more than 2 million rubles.

According to court documents, a resident of the village of Zelenets in the south of the republic equipped a warehouse with 88 cryptocurrency mining devices. The farm operated from December of last year to February of this year. The man independently connected the equipment to the power grid bypassing the meter, possessing specialized knowledge in the field of power engineering, the state prosecution claims.

The organizer of the farm did not pay for the electricity consumed. “Komi Energy Supply Company” claims it was unaware of the unaccounted connection. A criminal case against the miner was initiated based on materials from the Federal Security Service.

The court found the man guilty of “causing property damage by deception in a large amount without signs of theft” (Part 1 of Article 165 of the Criminal Code of the Russian Federation). The court took into account that the miner had no prior criminal record, was employed, and supported two children. According to the case materials, the defendant fully compensated the energy supply company for the damages before the verdict was handed down.

The Komi Republic is not included in the list of regions where cryptocurrency mining is banned. The ban applies, for example, in several republics of the North Caucasus, in certain territories of the Irkutsk region, Buryatia, and the Zabaykalsky Krai, as well as in Moscow, the Moscow region, and some districts of the Kursk region.

Previously, the Prioksky District Court of Nizhny Novgorov recovered 5.22 million rubles from a local miner for illegal electricity consumption. The man was also fined 150,000 rubles, and his cryptocurrency mining equipment was confiscated.