Inside Russia’s Biggest Crypto Mining Bust: 2,700 Rigs, Fake Meter Readings, and Seven Years of Free Power

How Did This Mining Operation Evade Detection For Seven Years

Russian authorities have seized more than 2,700 cryptocurrency mining machines from a commercial facility in St. Petersburg, revealing a long-running scheme to manipulate electricity usage.

According to Irina Volk, spokesperson for the Russian Interior Ministry, three local residents “signed a contract to connect a commercial property to the power grid” over seven years ago.

Investigators discovered that the suspects had tampered with electricity meters, allowing them to pay only a fraction of the power they consumed while operating mining rigs continuously from March 2018 to August 2025.

Police Raid Reveals Sophisticated Concealment

Footage shared on the Interior Ministry’s Telegram channel shows officers forcing open locked shipping containers and confronting individuals inside the premises.

Inside the containers, thousands of operational rigs were stacked alongside fans and cooling systems.

Authorities also seized two transformers and additional cooling equipment, suggesting the suspects had invested heavily to maintain efficiency while hiding the scale of their operation.

Charges Filed Against Suspects And Ongoing Investigations

The three unnamed individuals face charges under Article 165, Part 2 of the Russian Criminal Code for causing “property damage by deception or abuse of trust.”

The suspects were remanded in custody, with one under restricted movement and two required to report to investigators.

Officials are continuing to search for possible accomplices and have not disclosed the total value of electricity stolen or the specific cryptocurrencies mined.

Illegal Crypto Mining Expands Across Russia

The St. Petersburg case highlights a growing trend of illegal mining in Russia.

Authorities have recently uncovered other operations, including a network in the Donetsk People’s Republic where 25 rigs were connected directly to the grid, causing damages of 14 million rubles ($170,633).

In Irkutsk, a raid shut down an unregistered operation with over 200 advanced rigs consuming roughly 600,000 kWh per month—equivalent to powering 80–100 homes.

In Amur Oblast, a former power executive was arrested for siphoning electricity to mine Bitcoin, resulting in the seizure of 0.8414 BTC worth around $88,570.

What Methods Are Miners Using To Avoid Detection

Authorities say illegal miners have become increasingly inventive.

In St. Petersburg, shipping containers and cooling systems were used to conceal operations, while in other regions, miners have relied on underground facilities or mobile rigs in trucks and vans to evade energy inspectors.

Officials note that such activity has strained the national grid, leading to temporary bans on mining in over ten regions facing energy shortages.

Russia Balances Legal Mining With Energy Controls

President Vladimir Putin legalised cryptocurrency mining in August 2025, but the government has also imposed a six-year moratorium on mining in certain regions to prevent energy shortages.

Regulators now require industrial-scale miners to register with tax authorities, part of a broader effort to formalise the sector while cracking down on theft and unauthorised operations.

Why Authorities Are Targeting Illegal Miners Now

The Interior Ministry emphasises that raids such as the St. Petersburg operation aim to protect the energy infrastructure and ensure compliance with new mining laws.

Volk said the suspects’ operation had “operated unimpeded for seven years,” highlighting the need for stricter enforcement.

Experts warn that without regulation, illegal mining could continue to strain grids and pose risks to wider energy security.

Other Regions Face Similar Challenges

Power providers in Dagestan and other areas have also reported underground mining operations, with some miners shifting to mobile units to avoid detection.

These cases illustrate how the pursuit of cheap electricity is driving miners to increasingly sophisticated methods, prompting authorities to tighten monitoring and enforcement nationwide.