Russian Crypto Mining Hub in Irkutsk Takes Action Against Unauthorized Miners
In a recent development, the Russian city of Irkutsk, known for its crypto mining activities, has started cracking down on illegal and quasi-legal miners operating in the region. The Irkutsk Prosecution Service announced via a Telegram post that a 35-year-old crypto miner in the town of Cheremkhovo will be prosecuted for alleged electricity theft.
This move follows the closure of 17 illegal crypto mining farms in Krasnoyarsk, Omsk, and Khakassia by the power provider Rosseti. Additionally, Rosseti revealed the closure of 36 “illegal” crypto mining farms in the Republic of Dagestan since 2022. Similar actions have also been taken in Abkhazia, a nearby unofficial crypto mining hub.
Authorities in Irkutsk Oblast are hopeful that the Russian energy ministry’s plans to increase energy prices for miners will deter newcomers to the region. This measure aims to ease the strain on power grids in the area.
Images of the confiscated mining equipment were released by the prosecution officials, showcasing evidence from the raid on the 35-year-old miner’s “farm” in Cheremkhovo. Prosecutors estimate that the miner’s actions caused around $11,000 in damages and have charged him with property damage through deception or abuse of trust.
Investigators stated that the miner began his mining operations in early 2023, renting a plot of land to build his mining farm, complete with a non-residential building and an integrated transformer substation. Allegedly, the miner installed 214 pieces of computer equipment for cryptocurrency mining.
While crypto mining remains legally unrecognized in Russia, many “grey” miners resort to illegal connections to the power grid. The prosecution claims that the miner in question illicitly tapped into the substation’s current transformers, enabling him to consume electricity without proper payment. The police raided the farm in February 2023, but due to the nature of the charges related to energy theft, it has taken over a year for the case to progress.
In another case in Krasnoyarsk, prosecutors revealed that a group of illegal crypto mining farm operators had stolen electricity worth $434,800 from the local grid. Energy providers are now utilizing new tools and methods to detect and apprehend illegal miners more efficiently.