Michaela
Russian prosecutors have uncovered an illegal crypto mining operation hidden inside a three-story orphanage in the Siberian village of Kazaqiye.
Authorities in Russia’s Irkutsk region have seized 96 cryptocurrency mining rigs in the Bokhansky District, according to a statement from the Irkutsk Oblast Prosecutor’s Office. The operation was reportedly set up by an unnamed non-profit organization, which had installed the equipment inside an orphanage. Although the three-story building remains registered as an educational facility, it is currently not in operation.
Prosecutors also found that the organization failed to comply with fire safety and electrical regulations. Required maintenance checks on wiring and electrical equipment were not conducted, and the facility lacked an automatic fire alarm system.
Russian prosecutors have initiated legal proceedings against the head of the non-profit organization, accusing them of breaching energy consumption regulations. The individual also faces charges related to improper installation and operation of energy-intensive equipment, along with violations of fire safety protocols.
“The prosecutor also filed a claim against the organization to stop the misuse of the land plot by prohibiting mining activities and dismantling the equipment used to produce cryptocurrency,” the Irkutsk Oblast Prosecutor’s Office stated.
Crypto mining remains a contentious issue in Irkutsk Oblast, where low electricity rates continue to attract both unauthorized operators and legitimate industrial firms. In several parts of the region, including the Bokhansky District, mining is strictly prohibited during the winter months due to increased energy demand and strain on local power grids.
Despite these restrictions, the area has become a hotspot for illicit mining activities, with authorities regularly cracking down on unauthorized operations that exploit subsidized electricity intended for residential and public use.
The harsh winters in Irkutsk and surrounding regions reduce the need for expensive cooling systems, making crypto mining more cost-effective. However, this increased activity has placed significant strain on the local power grid, leading to widespread concerns over energy consumption and infrastructure stability.
In February, Aisen Nikolaev, head of the Republic of Sakha and chairman of the State Council Commission on Energy, suggested constructing dedicated power plants for crypto mining in Russia. The proposal aims to separate the industry’s high energy consumption from public electricity grids, reducing strain on local infrastructure.
Nikolaev warned that unregulated crypto mining has significantly increased electricity consumption in certain areas, straining energy resources. He noted that the surge in demand has led to capacity shortages and lower power quality, particularly in regions with limited energy reserves, affecting both residents and local businesses.
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Michaela has no crypto positions and does not hold any crypto assets. 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.
