Two Russian Crypto Mining Centers Shut Down, 400+ Rigs Taken Offline

Russian authorities dealt a blow to the country’s crypto mining efforts by shutting down two illegal mining centers. Over 400 crypto mining rigs were taken offline in raids conducted in Siberia and the republic of Dagestan. In Novosibirsk, officers discovered an illegal connection to the power grid in a disused boiler house, where they found more than 100 operational ASIC devices designed for mining cryptocurrencies. The illegal miners caused millions of rubles in damage to the electrical grid. In Dagestan, officials uncovered an illegal mining farm in an abandoned brick factory, where they disconnected 300 devices used for mining coins. The miners had bypassed electricity meters and connected to a local power line. Russian crypto mining remains in a regulatory “grey zone,” lacking legal status. Industrial miners have been urging the government to legalize the industry for years. Without recognition as a legitimate form of entrepreneurship, the sector will remain in a state of uncertainty. The operators of the illegal mining centers may face criminal charges and potential imprisonment if convicted. Meanwhile, Russian industrial miners are concerned about proposed higher electricity tariffs that could hinder the sector’s growth and prevent Russia from becoming a global leader in crypto mining.