Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Russian crypto mining center of Irkutsk seems to be intensifying its efforts against unlawful and semi-legal miners.
According to a Telegram announcement from the Irkutsk Prosecution Service, a 35-year-old unnamed crypto miner will “face trial for electricity theft” in the town of Cheremkhovo.
Irkutsk: Russian Crypto Mining Center Aims to Prevent Power Drain
This action follows the recent closure of 17 illegal crypto mining operations by the power supplier Rosseti in Krasnoyarsk, Omsk, and Khakassia.
Rosseti also reported that it had dismantled 36 “illegal” crypto mining farms in the Republic of Dagestan since 2022.
Similar enforcement actions have been executed in the nearby de facto territory of Abkhazia, another unofficial crypto mining area.
The Irkutsk Oblast is optimistic that the Russian energy ministry will continue with its contentious plans to increase energy costs for miners.
Officials in the Oblast are hopeful that this initiative will help reduce the influx of new miners into the region and alleviate the strain on its power infrastructure.
Irkutsk Aims to Eliminate ‘Grey’ Miners
Prosecution officials shared images of the equipment confiscated during a raid on the 35-year-old’s mining “farm” in Cheremkhovo.
Crypto mining equipment seized by Russian prosecution officials in a raid in the Irkutsk Region. (Source: Irkutsk Prosecution Service)
Prosecutors believe the miner “inflicted damage” estimated at approximately $11,000 and have charged him with “causing property damage through deception or abuse of trust.”
Related Posts
Investigators indicated that the miner was active in early 2023 in Cheremkhovo, claiming he rented a piece of land intending to establish a mining farm.
The site included “a non-residential structure with an integrated transformer substation.”
The individual reportedly “set up 214 units of computer equipment, which were utilized for cryptocurrency mining.”
While this activity is not inherently illegal, as crypto mining lacks legal recognition in Russia, many so-called “grey” miners utilize unauthorized grid connections.
Source: Google Maps/Map Data ©2024 Google
The prosecution asserted that the miner “illegally connected jumper wires to the current transformers of the substation.”
This enabled him to “consume electricity unaccountably” without “proper payment.” Law enforcement raided the farm in February 2023.
However, the case has taken over a year to process, primarily because the individual can only be charged with offenses related to energy theft.
The US government seeks to confiscate Russian sovereign assets to assist Ukraine in its fight and support its devastated economy. Some allies express caution regarding such a move and the precedent it may establish https://t.co/waRdky97B4
— Bloomberg Economics (@economics) March 16, 2024
In Krasnoyarsk, prosecutors reported that a group of illegal crypto mining farm operators stole $434,800 worth of electricity from the local grid.
Energy providers claim they have developed new tools and techniques that enable them to identify illegal miners more swiftly.
The post Russian Crypto Mining Hotspot Cracks Down on Illegal Miners appeared first on Cryptonews.
