In the <a href="https://ultramining.com/news/en/irkutsk-region-busts-1-000-illegal-crypto-miners-in-a-year-fires-a-major-concern/" rel="noopener noreferrer nofollow">Irkutsk</a> region, authorities have seized approximately 500 units of illegal crypto <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">mining equipment</a> from residents of the "Uyutnoye" dacha community and the "Molodezhnoye" cottage village. The damage from <a href="https://ultramining.com/news/en/abkhazia-intensifies-crackdown-on-illegal-crypto-mining/" rel="noopener noreferrer nofollow">illegal mining</a> activities has exceeded 200 million rubles, according to the Investigative Committee of the Russian Federation for the <a href="https://ultramining.com/news/en/irkutsk-governor-calls-for-tighter-crypto-mining-regulations-amid-tax-shortfalls-and-energy-crisis/" rel="noopener noreferrer nofollow">Irkutsk</a> Region, according to <a href="https://bitcoinke.io/2024/07/hashlabs-supports-the-launch-of-a-decentralized-mining-pool/" rel="noopener noreferrer nofollow"></a><a href="https://tass.ru/proisshestviya/21403841" rel="noopener noreferrer nofollow">TASS</a>.
Investigators allege that residents of the Irkutsk district installed the mining equipment and connected it to the electrical networks supplying the local population, paying for the electricity at the preferential household rate. This resulted in over 200 million rubles in damages. A criminal case has been initiated under Article 159, Part 4 of the Russian Criminal Code (large-scale fraud). The equipment has been confiscated.
The <a href="https://ultramining.com/news/en/large-scale-cryptocurrency-mining-farm-uncovered-in-dagestans-kizilyurtovsky-district/" rel="noopener noreferrer nofollow">investigation</a> is part of a larger case involving fraud and abuse of power by representatives of the electrical network company, who accepted bribes to sign contracts for technological connections to the electrical grid, knowing they would not fulfill their obligations.
Since 2019, the Irkutsk region has seen a significant increase in crypto mining activities. The region became a hub for mining due to <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">China</a>'s ban on cryptocurrency mining and the lowest electricity rates in Russia for residents. Most miners operate illegally, installing equipment in homes, apartments, garages, dachas, and balconies, and paying for electricity at residential rates, which are lower than commercial rates.
This situation highlights the urgent need for regulations in Russia's crypto <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">mining industry</a> to prevent abuse and ensure the stability of the power grid.

Russian Authorities Seize 500 Crypto Mining Rigs in Irkutsk Region

Ultramining_Eng

Other articles published on Jul 22, 2024

Hamster Kombat Daily Combo and Cipher Code for 23 July 2024

Multiple Spot Ethereum ETFs Approved by NYSE Arca, Awaits SEC Nod

Ripple Leads the Way: Transforming Industries from Real Estate to Carbon Credits with Tokenization

Bitcoin Rises Boost Investor Sentiment

Height matters: The rug pull that funded a tall tale

Crypto: The SEC Accused of Stifling Innovation by Seven U.S. States

Join our free newsletter for daily crypto updates!