Michaela
Peter Fedorov, an associate professor at Russia’s National Research University of Electronic Technology (MIET), has shared that the country loses roughly 10 billion rubles, around $120 million, each year in tax revenue due to illegal crypto mining.
Key points:
- Russia reportedly loses about $120 million annually in tax revenue due to illegal crypto mining, according to MIET associate professor Peter Fedorov.
- Authorities discovered over 7,600 illegal mining sites in the Irkutsk region, with operations causing power grid strain and local blackouts.
- Recent crackdowns have targeted individuals exploiting state resources, including a power company executive accused of stealing electricity to mine Bitcoin.
According to local reports, Fedorov explained that the exact scale of losses is hard to determine, as funds bypassing the national budget through unregistered crypto mining are not officially tracked. His estimates were based on analyses of publicly available data and resource usage levels.
Fedorov noted a recent case in the Irkutsk region, where authorities uncovered 7,600 sites involved in illegal crypto mining over the past year. He noted that such operations not only reduce state tax revenues but also strain local power grids, leading to occasional outages in residential areas.
“First of all, those areas where electricity supply is strictly limited suffer the most, and when consumption exceeds capacity, outages occur due to overload,” Fedorov said in a translated report.
Illegal crypto mining has emerged as a growing concern in Russia, with authorities intensifying efforts in recent months to dismantle unlicensed mining operations across the country.
In June, Russian authorities intensified their efforts to combat illegal cryptocurrency mining, focusing on individuals accused of misusing state resources for profit. In one instance, a power company executive was found operating an unauthorized Bitcoin mining scheme using stolen electricity, resulting in the seizure of over $88,000 worth of BTC.
Investigators alleged that the former executive leveraged his expertise in the power grid to illegally reroute electricity for personal use, operating cryptocurrency mining equipment from his residence. Authorities report that he connected to the network without authorization to sustain the high energy demands of the mining operation.
Furthermore, investigators revealed that the former executive had illicitly connected his home to the company’s power infrastructure, siphoning electricity directly from DRSC facilities. The unauthorized consumption was estimated at over 3.5 million rubles, equivalent to roughly $44,000 worth of stolen power.
The rise in illegal crypto mining has prompted calls for tighter regulation and enhanced monitoring of energy usage across Russia’s regions. As the government works to balance innovation with enforcement, experts warn that unchecked crypto operations could further strain the nation’s power infrastructure and undermine legitimate blockchain development efforts.
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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.
