Russian Energy Firms Fighting Back Against Illegal Crypto Miners?
Illegal crypto mining is becoming a growing problem in Russia, with power companies starting to take action against individuals who attempt to steal electricity from local grids. In a recent case, an illegal crypto miner in Yuzhno-Sakhalinsk, Russia, caused significant damage to the local power grid and allegedly stole around $225,000 worth of electricity. The power provider, Sakhalinenergo, discovered an illegally connected transformer substation on the premises of a construction company, where the miner had set up their operation.
According to Sakhalinenergo, the miner had connected an unknown number of crypto mining rigs directly to the grid and housed them in two container units. They illegally connected a transformer substation with a capacity of 1250 kVA to the power provider’s network, with the total capacity of the equipment estimated at about 4 million kW/h. The miner managed to bypass metering systems and operated undetected from December 2021 to May 2022.
Authorities launched a criminal case against the alleged miner, who was charged with causing property damage on an especially large scale. The miner’s property was seized as part of the investigation.
This incident is not an isolated case in Russia. In the city of Irkutsk, power companies recently identified 430 cases of suspected electricity theft by illegal crypto miners, amounting to an estimated $3.3 million worth of stolen electricity. These illegal crypto farms were found in various locations, including private homes, garages, balconies, and even the attic of a psychiatric hospital.
Similar cases of electricity theft by illegal miners have been reported in other regions, such as the Russian Republic of Dagestan and Ukraine. This issue highlights the need for increased vigilance and measures to prevent and combat illegal crypto mining activities.
Frequently Asked Questions
What is illegal crypto mining?
Illegal crypto mining refers to the unauthorized use of computing resources to mine cryptocurrencies without the owner’s permission or without complying with the necessary legal and regulatory requirements.
How do illegal miners steal electricity?
Illegal miners often bypass metering systems and directly connect their mining rigs to the power grid, either by illegally tapping into existing power lines or by setting up their own power infrastructure.
What are the consequences of illegal crypto mining?
Illegal crypto mining can cause significant damage to local power grids, leading to service disruptions and financial losses for power providers and other energy consumers. It can also put a strain on power resources, leading to increased electricity prices for legitimate users.
What actions are being taken against illegal crypto miners in Russia?
Russian power companies are becoming more alert to illegal crypto mining activities and are working with authorities to identify and prosecute individuals involved in electricity theft. Criminal cases have been opened against illegal miners, and their properties have been seized as part of the investigations.
Is Russia a crypto mining hotspot?
According to domestic experts, Russia has been experiencing a growing trend in crypto mining activities. The country’s vast energy resources and relatively low electricity costs make it an attractive location for crypto miners. However, the rise of illegal mining activities has prompted power companies and authorities to take action to protect the integrity of the power grid and prevent electricity theft.
