Russian Authorities Seize 238 Mining Machines in Crackdown on Illegal Crypto Operations

In a raid conducted by the Investigative Committee of the Russian Federation for the Irkutsk region, 238 mining machines were confiscated from unauthorized digital asset mining operations. The illegal activities caused over $758,000 in damages by exploiting electricity intended for domestic use. This is part of a broader crackdown in the region, which has become a hub for mining due to low electricity costs.

Russia: Seizure of 238 Machines for Illegal Mining Activities

Russian authorities have ramped up their efforts to curb illegal cryptocurrency mining activities, confiscating 238 mining machines in a recent operation in the Irkutsk region. According to the Russian news agency TASS, the raid was carried out by the Investigative Committee of the Russian Federation in Priangarye, a locality known primarily for agriculture and gardening.

The seized machines were being used in unauthorized mining operations by members of the “Angarsky Bereg” association, a non-profit organization originally dedicated to agricultural activities. The miners reportedly caused significant damage, estimated at over 68 million rubles (approximately $758,000), by using electricity intended for domestic use at subsidized rates.

This recent raid is not an isolated incident. In July, Irkutsk authorities seized 500 mining machines from another agricultural community. Similarly, in May, another operator was accused of illegal mining activities, highlighting the growing challenge of unauthorized digital asset mining in the region.

Electricity and Regulatory Issues

The Irkutsk region has become a hotspot for digital asset mining in Russia, largely due to its low electricity prices and favorable climate. However, local energy companies have raised concerns about miners overloading the power grids. Many of these miners are accused of using inefficient equipment and exploiting subsidized electricity intended for residential use.

A criminal investigation has been launched against the miners involved in the latest operation, with charges of fraud being considered due to their payment of electricity at lower, domestic rates instead of the higher commercial rates. The case has been handed over to the local prosecutor for further legal action.

Region’s Evolution as a Mining Hub

Since 2019, mining activities in the Irkutsk region have surged, particularly after China imposed a ban on cryptocurrency mining. The region’s low electricity tariffs for domestic needs have made it an attractive location for miners, many of whom operate without proper authorization. These unauthorized operations often take place in private spaces like homes and garages, further complicating regulatory oversight.

As of September 1st, 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 also have the power to mandate the shutdown of mining equipment in case of power grid overloads, as part of the efforts to manage the region’s evolving mining industry.

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