In a significant crackdown on illegal cryptocurrency mining, the Investigative Committee of the Russian Federation in the Irkutsk region has confiscated 238 machines used for mining digital assets. The operation took place in the Priangarye locality, an area primarily dedicated to agriculture and gardening. According to the Russian news agency TASS, the illegal mining activities resulted in over 68 million rubles (approximately $758,000) in damages due to the misuse of electricity intended for domestic purposes.
Irkutsk Authorities Crack Down on Illegal Mining: Seizures and Raids Target Unauthorised Operations
The mining devices were discovered in the possession of members of the “Angarsky Bereg” association, a non-profit organisation traditionally focused on agricultural activities. Recently, however, these areas have been repurposed for unauthorised mining operations. This raid is part of an ongoing effort by Russian authorities to combat illegal mining activities in the region.
This is not the first time Irkutsk authorities have conducted such operations. In July, they seized 500 mining machines from another agricultural community, and in May, another operator faced charges for illegal mining.
Read more: Russia to Use National Payment System for Crypto Swaps on 1 Sept — What You Need to Know
Irkutsk Mining Boom Faces Legal Scrutiny: Fraud Investigation Over Exploited Subsidised Electricity
The Irkutsk region has become a hotspot for digital asset mining due to its low electricity prices and favourable climate conditions. However, this boom has led to significant issues, with local energy companies accusing miners of overloading power grids. These miners often use inefficient equipment and exploit subsidised electricity rates intended for domestic use, thereby reducing costs unlawfully.
A criminal investigation has been launched against the miners for fraud, as they paid for electricity at a lower, domestic rate rather than the higher commercial rate. The case is currently with the local prosecutor for further legal action.
Irkutsk Mining Surge Faces New Regulations: Balancing Growth with Grid Stability
Since 2019, the Irkutsk region has seen a surge in mining activity, largely driven by China's ban on cryptocurrency mining and the region's low electricity tariffs. Many operators, however, have been working without proper authorisation, setting up equipment in homes, garages, and other private spaces.
As of 1st September, industrial mining of digital assets is legal in Russia, but miners are required to register with an official registry and may face higher electricity rates. Local authorities are also empowered to require miners to shut down their equipment in cases where the power grid is at risk of overload.
Read more: Vladimir Putin Legalises Bitcoin Mining: A Bold Move for Russia's Crypto Sector
This recent seizure underscores the ongoing tension between the burgeoning cryptocurrency mining industry in Russia and the regulatory efforts aimed at controlling its impact on the national power grid and economy.
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XingChi
JinseFinance
Edmund
Bitcoinist
Cointelegraph