Crypto Mining Crackdown in Russia Leads to Bitcoin Seizure and Power Theft Arrest

June 4, 2025

Russian authorities have launched a crackdown on illegal crypto mining, targeting individuals who exploit state resources for personal gain. In one case, a power company executive was found to have stolen electricity to mine Bitcoin and has had more than $88,000 in BTC seized.

In a recent statement, the Investigative Committee for Russia’s Amur Oblast announced the seizure of Bitcoin valued at approximately 7 million rubles. The digital assets were confiscated from a former executive of a regional power distributor, believed to have previously led the technological connection services division at the Amur branch of the Far Eastern Distribution Company (DRSC).

The DRSC operates as a regional electricity grid provider, managing power distribution across Russia’s Amur Oblast in the Far East.

Authorities allege that the former executive exploited his technical knowledge of the power grid to divert electricity for personal use, secretly running crypto mining rigs from his apartment. Investigators say he tapped into the network without authorization to support the energy-intensive operation.

Additionally, investigators reported that the former executive illegally wired his residence to the company’s electrical infrastructure, drawing power directly from DRSC facilities. The unauthorized usage amounted to more than 3.5 million rubles, or approximately $44,000, in stolen electricity.


Authorities also allege that the former executive accepted bribes from local business owners in exchange for fast-tracking approvals on electricity-related paperwork. One entrepreneur reportedly paid him to greenlight official documents tied to power access and infrastructure.

The case spotlights growing concerns over the intersection of cryptocurrency activity and infrastructure abuse in regions where regulatory oversight is tightening. As digital assets become more integrated into global financial systems, authorities worldwide are stepping up efforts to curb illicit use tied to energy theft and fraud. 

Legal experts say enforcement agencies are likely to increase collaboration with utilities and tech firms to trace unauthorized crypto mining operations. With energy consumption under heightened scrutiny, particularly in jurisdictions facing power shortages or high demand, enforcement measures are expected to become more aggressive. 

This reflects a broader shift in policy aimed at balancing innovation with accountability. As the legal landscape evolves, those operating in the crypto space may face heightened scrutiny around how and where their operations source power.

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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.

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