Illicit Cryptocurrency Mining Facility Dismantled in St. Petersburg
Authorities in St. Petersburg, Russia, have dismantled an illicit cryptocurrency mining facility located within an industrial area, raising concerns about scams linked to crypto trading. The operation, situated near the renowned Mitrofanievsky Highway, was raided by police who seized numerous crypto-mining machines from a warehouse.
Impact on Electrical Infrastructure
Reports by the media outlet RBC indicate that this mining operation inflicted approximately 10 million rubles (around $127,873) in damages to the city’s electrical infrastructure. Emergency officials from St. Petersburg released photographs depicting the farm’s setup on the VK platform, known as Spb Today. A spokesperson from the Ministry of Internal Affairs noted that when they inspected the site, it was devoid of any personnel, prompting a search for those responsible for the mining operation.
Details of the Operation
The facility reportedly spanned several hundred square meters and illegally drew electricity from a neighboring substation via a main distribution board. The police provided video evidence showing the extensive array of mining rigs and suspiciously overridden power meters before proceeding with the confiscation of all equipment involved.
Warnings About Crypto-Related Scams
In conjunction with this seizure, the Ministry of Internal Affairs has issued a warning to the public regarding a rising wave of crypto-related scams. The Russian state news outlet TASS reported that these scams often involve foreign call centers that pose as crypto trading educators, targeting Russian citizens with offers of training from supposedly well-credentialed professionals.
Scammers manipulate their victims by creating a facade of credibility, claiming expertise through prestigious affiliations and encouraging individuals to sign up on certain crypto platforms. They reassure their targets through small payouts, typically around $3, to create a false sense of trust and entice them into making larger investments of $300 or more.
Consequences of Crypto Fraud
The ultimate goal of these fraudsters is to persuade victims to relinquish control of their trading accounts, culminating in the theft of all invested funds under the pretense of profit payouts. In a separate but notable case, influencer Valeria Fedyakina, known as Bitmama, was recently sentenced to seven years’ imprisonment for orchestrating a crypto fraud scheme estimated at $21.3 million. This illustrates the scale and danger of the ongoing cryptocurrency scams in Russia as authorities work to combat the illicit activities surrounding this burgeoning financial landscape.
