A Cryptocurrency Mining Hotspot in Russia Takes Action Against Illegal Miners

The Russian city of Irkutsk, a center for cryptocurrency mining, is taking action to address the problem of unauthorized or partially authorized miners.

As stated in a recent update posted on Telegram by the Irkutsk Prosecution Service, an individual involved in cryptocurrency mining and whose identity has not been disclosed will be subject to legal proceedings for the alleged act of electricity theft that occurred in the town of Cheremkhovo.

Attempts to Prevent Power Drain at a Crypto Mining Hotspot in Russia

It was not long after Rosseti, the power provider, had shut down 17 unauthorized cryptocurrency mining facilities in Krasnoyarsk, Omsk, and Khakassia that the decision was made.

In addition, Rosseti has reported that 36 cryptocurrency mining farms in the Republic of Dagestan have been shut down because they were operating illegally.

Abkhazia, a neighboring self-proclaimed state that is also an additional unregulated center for cryptocurrency mining, has implemented measures comparable to those implemented in other states.

The Irkutsk Oblast holds an optimistic outlook regarding the Russian energy ministry’s intention to move forward with its controversial proposals to raise the cost of energy for miners.

The area’s authorities hope that this decision will effectively reduce the number of new miners who move to the region. Furthermore, they are optimistic that this will reduce the strain on their power networks when this occurs.

Irkutsk Seeks to Close Down Unauthorized Miners

After conducting a search warrant on the 35-year-old’s mining operation in Cheremkhovo, the prosecution officials made public photographs of the equipment that was seized during the search warrant.

Approximately eleven thousand dollars worth of damage is believed to have been caused by the miner, according to the prosecution (prosecutors). He is accused of causing damage to property through deception or abuse of trust, which is the offense that he is charged with charging.

The investigators stated that the miner was operating in Cheremkhovo at the beginning of 2023. Reports indicate that the individual allegedly leased a piece of land with the intention of constructing a mining facility on it.

It was described in the narrative as “a commercial structure with a built-in power substation.”

According to reports, the individual “set up a staggering 214 units of computer hardware, which were utilized for the purpose of mining digital currency.”

Given that cryptocurrency mining is not yet recognized as a lawful activity in Russia, it is not considered a criminal offense from a legal standpoint. Notwithstanding this, a significant number of self-proclaimed “grey” miners engage in unauthorized grid connections.

The prosecution argued that the miner had “unlawfully linked jumper cables to the substation’s current transformers.”

For some inexplicable reason, he was able to use electricity without paying for it. In February 2023, a large number of law enforcement officers arrived at the farm.

Despite this, it has been more than a year since the case was initially initiated. This is primarily because the individual being investigated can only be charged with theft of energy.

It has been reported by the prosecutors in Krasnoyarsk that a group of illegal operators who were operating a cryptocurrency mining facility illegally appropriated electricity from the regional power grid for $434,800.

The companies that provide energy assert that they have developed cutting-edge tools and methods that can detect and apprehend illegal miners in a short amount of time.