Dismantling of Illegal Cryptocurrency Mining Operation in Russia
Authorities in Russia have dismantled a large-scale cryptocurrency mining operation that was functioning without proper authorization in a state-owned industrial facility. The Krasnoyarsk Krai Prosecutor’s Office revealed details about the operation through a Telegram announcement, noting that the illicit mining site covered an area of 30,000 square meters and was located in the town of Nazarovo, approximately 240 kilometers from Krasnoyarsk in Central Siberia.
Key Findings During the Raid
Officials obtained a court order that enabled law enforcement to execute a raid on the premises, where it was discovered that the mining activities were generating substantial profits—around 4.6 million rubles (about $58,672 USD) each month.
Despite being concealed by barbed wire, the illegal operation was easily noticeable, strategically situated in an industrial zone. Investigators noted that the site was officially categorized as a “non-residential building,” attributed to a management company. Upon inspection, law enforcement agents found multiple power transformers, cooling systems, and various crypto mining machines among other equipment.
Illegal Connections and Public Safety Risks
It was reported that the management company had sublet the property to a crypto mining firm that was utilizing an unregistered building while illegally tapping into the city’s electricity grid. The probe was prompted by a warning from a local energy provider, which had observed a heightened risk of emergency power cuts due to the mining activities. Further investigations revealed that the operators lacked any permissions to use both the power-receiving units and the public land. Additionally, they were found failing to adhere to essential fire safety regulations, posing a significant risk to public safety.
Response from Authorities
Initially, officials reached out to the mining operators, urging them to cease their activities; however, their pleas were disregarded. This led prosecutors to escalate the matter to a district court, which subsequently prohibited any operations at the site pending remedial actions.
Broader Implications for Crypto Mining in the Region
This incident adds to a troubling narrative surrounding crypto mining in the region. Earlier this year, a local energy employee was implicated for accepting bribes from illegal crypto miners, choosing not to report their unauthorized connections to the power grid. Those involved in the mining operation were ultimately discovered to have pilfered approximately 9.4 million rubles ($119,592 USD) from the Krasnoyarsk Krai energy supply.
Notably, Krasnoyarsk Krai ranks among Russia’s leading regions for crypto mining, alongside the Republic of Tatarstan and the Irkutsk region.
