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Russian authorities have commenced the confiscation of Bitcoin (BTC) from illicit cryptocurrency miners as part of an expanding enforcement initiative.
According to a statement from the Investigative Department of the Investigative Committee (SKR) for the Amur Oblast, approximately 7 million rubles ($88,570; BTC 0.8414) worth of Bitcoin was seized from a former executive of an unnamed electricity company.
The individual in question was identified as the previous head of technological connection services at the Amur branch of the Far Eastern Distribution Company (DRSC).
Bitcoin Seizures from Miners – A New Strategy from Moscow
The DRSC serves as an electricity grid provider, facilitating the distribution of electricity across networks in the Amur Oblast, located in Russia’s Far East.
The Amur Oblast on a map of Russia. (Source: Stasyan117/Seryo93 [CC BY-SA 4.0])
Investigators report that the individual exploited his expertise in the company’s power distribution systems to illegally draw electricity from the grid, which he then utilized to operate BTC mining equipment.
The SKR noted that the individual was discovered “mining cryptocurrency in his own residential building, leveraging his knowledge in technological connections to electrical networks.”
Authorities indicated that the individual employed his skills to circumvent a metering device in 2024, subsequently establishing an unlawful connection to the electrical grid facilities of his employer.
Officers estimated that the individual misappropriated over 3.5 million rubles ($44,334) worth of electricity from the DRSC.
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The SKR serves as Russia’s primary federal investigative body and anti-corruption agency. The organization stated that it collaborated with the Federal Security Service to secure the Bitcoin.
Law enforcement claims that the same individual also accepted bribes from business owners in the Oblast, who allegedly compensated the executive to authorize electricity-related documentation.
Russian officials reported that over 700,000 households were left without electricity in two Ukrainian regions it partially occupies, due to damage to energy infrastructure https://t.co/UpsEEEIcKa
— Bloomberg (@business) June 3, 2025
Legal Complications
The confiscation of Bitcoin and other cryptocurrencies has historically posed challenges for investigators, as BTC lacks legal recognition in Russia.
Nonetheless, this situation may soon change. In April of this year, ministries formulated a legal framework that aims to empower courts and law enforcement with new authorities to seize crypto in criminal matters.
This initiative has garnered support from government policymakers. If enacted, it would enable officials to classify cryptoassets as intangible property in criminal proceedings.
Investigators seem to have embraced the essence of this proposed legislation in several notable cases, including the server operator of the Hydra darknet portal, from whom authorities seized $8.2 million in cryptocurrency.
Bailiffs have also confiscated BTC 1,032 from Marat Tambiev, a former investigator with the Russian Investigative Committee.
A court convicted the ex-investigator of accepting Bitcoin bribes from an international fraud syndicate and sentenced him to 16 years in prison.
The post Russian Investigators Begin Seizing Bitcoin from Illegal Crypto Miners appeared first on Cryptonews.
