Russia Confiscates 238 Cryptocurrency Mining Rigs From Gardening Village

Russian authorities have confiscated 238 cryptocurrency mining rigs in the Irkutsk region, a well-known hub for Bitcoin mining.

According to a report by state media outlet TASS, the The Investigative Committee of the Russian Federation for the Irkutsk Region conducted the raid in the Priangarye area. The mining rigs were found in a settlement associated with the Angarsky Bereg gardening partnership, a non-profit organization purportedly comprising agriculturalists working in rural areas.

Officials stated that the illegal miners caused damages amounting to over 68 million rubles (around $758,000). The Investigative Committee said that the rigs were in the possession of residents of the gardening community. These miners allegedly paid for electricity at a discounted rate intended for household needs and used it to power their mining operations.

The committee mentioned that a “criminal case” has been launched against the miners on fraud-related charges. The case has now been handed over to the local prosecutor’s office for further action.

The Irkutsk region in Southeastern Siberia has become a significant center for Russia’s crypto-mining sector through the years. This development is largely due to the region’s low energy rates and cold winter temperatures, which are favorable for cryptocurrency mining.

Energy professionals cited by TASS believe that the mining operations in Irkutsk has been there since 2019, particularly following China’s ban on crypto mining. The region is said to offer the lowest electricity tariffs for the country’s population, making it highly attractive to both legal and illegal miners.

Officials pointed out that most miners in the region operate illegally, often installing their equipment in houses, apartments, garages, summer cottages, and even balconies. Electricity companies in the area have raised concerns, accusing miners of overloading power grids by connecting to them using makeshift equipment and then using subsidized residential electricity to run their cryptocurrency mining rigs. As a result, mining activities have been linked to widespread disruptions in the power supply across the region.

Industrial crypto mining has been declared legal in Russia as part of efforts to find alternative means to counter Western-led sanctions. However, miners must register their operations with a central regulator and may be subject to paying higher electricity rates. Provinces have also been granted the authority to shut down mining rigs when grids become overloaded temporarily.

The recent raid in Irkutsk follows similar actions taken earlier this year. In July, authorities seized 500 cryptocurrency mining rigs from another agricultural community, and in May, charges were brought against another suspected illegal miner. Experts note that around 90% of Russian crypto miners focus on Bitcoin mining, and many continue to operate without registering, thereby avoiding higher costs associated with regulated operations.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 165