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Russian Crypto Mining Crackdown in Irkutsk
The Russian crypto mining hotspot of Irkutsk appears to be cracking down on illegal and quasi-legal miners. Per a Telegram post from the Irkutsk Prosecution Service, an unnamed crypto miner, aged 35, will “stand trial for stealing electricity” in the town of Cheremkhovo.
Rosseti’s Actions Against Illegal Mining Farms
The move comes shortly after the power provider Rosseti closed down 17 illegal crypto mining farms in Krasnoyarsk, Omsk, and Khakassia. Rosseti also announced it had shut down 36 “illegal” crypto mining farms in the Republic of Dagestan since 2022.
Crackdowns in Surrounding Regions
Similar crackdowns have been carried out in the nearby de facto nation of Abkhazia, another unofficial crypto mining hub.
Efforts to Regulate Energy Prices
The Irkutsk Oblast is hopeful that the Russian energy ministry will press ahead with its controversial plans to hike energy prices for miners. Oblast officials hope this move will help stem the flow of new miners to the region and relieve the pressure on its power grids.
Prosecution and Charges
Prosecution officials released photographs of the equipment they seized in a raid on the 35-year-old’s mining “farm” in Cheremkhovo. Investigators said the miner was active in early 2023 in Cheremkhovo and had installed 214 pieces of computer equipment for mining cryptocurrency.
Energy Theft Allegations
The prosecution claimed that the miner “illegally connected jumper wires to the substation’s current transformers,” allowing him to consume electricity without proper payment. Police swooped on the farm in February 2023.
Developments in Identifying Illegal Miners
In Krasnoyarsk, prosecutors said that a group of illegal crypto mining farm operators stole $434,800 worth of electricity from the local grid. Energy providers have developed new tools and methods to identify illegal miners faster.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
