Table of Contents
- Raids net over 400 crypto mining rigs, cause damage to power grid
- Pressure to Curb Unregulated Mining Farms
Raids net over 400 crypto mining rigs, cause damage to power grid
Russian authorities have shut down two large illegal cryptocurrency mining operations in Siberia and the republic of Dagestan, seizing over 400 mining rigs in the process.
In Novosibirsk Oblast, police raided an abandoned boiler house in a village near Iskitim where an “illegal connection” to the power grid was discovered according to Kommersant. Over 100 active ASIC mining devices were found, causing damage to the electrical grid valued at several million rubles.
The power company involved is reportedly considering launching a criminal case against the operators of the Iskitim farm, who face up to five years in prison if convicted of theft and breach of trust.
In the Kizilyurt District of Dagestan, an illegal mining farm was found at an abandoned brick factory with over 300 cryptocurrency mining devices according to the Russian Ministry of Internal Affairs. The operation caused nearly $18,700 in damages due to illegal electricity consumption and bypassed electricity meters.
Pressure to Curb Unregulated Mining Farms
The state-run power firm Dagenergo has requested that mining farms in Dagestan power down their rigs to prevent blackouts. There is broader government pressure to raise electricity tariffs for miners to discourage them from overloading grids and to prevent Russia’s crypto mining industry from growing into a global leader.
However, as Reuters reports, US agencies are now actively tracking crypto mining’s impact on energy usage. And according to Bloomberg Markets, Russian tycoon Alexey Mordashov is investing in mining farms. These developments indicate that regulating Russia’s unlicensed crypto mining operations will be an ongoing challenge.
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Russia Shuts Down Two Large Illegal Crypto Mining Farms appeared first on Althalla.