In the Irkutsk region, authorities have seized approximately 500 units of illegal crypto mining equipment from residents of the “Uyutnoye” dacha community and the “Molodezhnoye” cottage village. The damage from illegal mining activities has exceeded 200 million rubles, according to the Investigative Committee of the Russian Federation for the Irkutsk Region, according to TASS.
Investigators allege that residents of the Irkutsk district installed the mining equipment and connected it to the electrical networks supplying the local population, paying for the electricity at the preferential household rate. This resulted in over 200 million rubles in damages. A criminal case has been initiated under Article 159, Part 4 of the Russian Criminal Code (large-scale fraud). The equipment has been confiscated.
The investigation is part of a larger case involving fraud and abuse of power by representatives of the electrical network company, who accepted bribes to sign contracts for technological connections to the electrical grid, knowing they would not fulfill their obligations.
Since 2019, the Irkutsk region has seen a significant increase in crypto mining activities. The region became a hub for mining due to China‘s ban on cryptocurrency mining and the lowest electricity rates in Russia for residents. Most miners operate illegally, installing equipment in homes, apartments, garages, dachas, and balconies, and paying for electricity at residential rates, which are lower than commercial rates.
This situation highlights the urgent need for regulations in Russia’s crypto mining industry to prevent abuse and ensure the stability of the power grid.
