Illegal cryptocurrency mining operations have cost Russia’s power grid operator, Rosseti, more than 1.3 billion rubles in 2024, as unauthorized connections continue to drain the country’s electricity supply.
The company reported that it had uncovered and halted 130 cases of illegal power consumption, with authorities launching over 40 criminal investigations into the issue.
According to Rosseti, the worst-hit regions include Rosseti North Caucasus, which suffered losses exceeding 600 million rubles; Rosseti Novosibirsk, with 400 million rubles in damages; and Rosseti Center and Volga Region, which recorded a loss of 120 million rubles.
Beyond financial losses, the surge in unregulated crypto mining is straining Russia’s electricity infrastructure, Rosseti warned. Unauthorized mining operations, often set up in makeshift locations, cause network overloads that lead to low voltage issues, potentially damaging electrical equipment and household appliances.
One such case was reported in Chapayevskoye, Karachay-Cherkessia, where authorities discovered a mining farm with nearly 200 mining rigs in a warehouse. The operation had consumed more than 12,000 kWh of electricity, leading to frequent complaints from residents about power instability. An unusual spike in electricity usage triggered the investigation.
Authorities have discovered illegal mining setups in various locations, including residential and rented plots. A significant bust occurred in Novosibirsk, where over 3,200 mining devices operated by one individual were found, with damages estimated at 197 million rubles. The suspect has been taken into custody as part of the investigation.
Notably, In November 2024, Russia introduced a national registry for crypto miners and a 15% tax, requiring miners to submit personal information, including wallet addresses, to regulate the industry and reduce unauthorized power use. Following this legalization, a ban on cryptocurrency mining was implemented in ten regions, effective January 1, 2025, to address local electricity shortages and comply with new regulations. Rosseti, the electricity provider, is committed to enhancing monitoring and collaborating with law enforcement to tackle illegal mining operations.
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