Russian authorities raided four major “illegal” data centers in Siberia and seized more than 3,200 pieces of cryptocurrency mining equipment. The Novosibirsk branch of Russian power supplier Rosseti led the crackdown on this illegal activity in cooperation with law enforcement agencies.
Criminal charges filed against mining center operators
As Rosseti reports via RBC Crypto, police have filed criminal charges against the operators of these mining centers. The facility has been identified as part of an interconnected “network” of illegal cryptocurrency mining operations scattered throughout the city of Novosibirsk.
Large-scale electricity theft discovered
Rosseti said the illegal mining center stole a total of $2.1 million worth of electricity from the Novosibirsk power grid. During the crackdown, authorities seized nine power transformers and 3,225 cryptocurrency mining devices.
Widespread presence of illegal mining farms
Novosibirsk, Siberia’s largest city, has emerged as an important hub for Russia’s fast-growing cryptocurrency mining industry, along with Irkutsk, nearly 2,000 kilometers to the east. However, concerns have been raised about a surge in illegal mining activity, including unauthorized connections to the grid for power theft.
Police crackdown and legal ramifications
In a joint effort, Novosibirsk police simultaneously shut down the operations of all four illegal cryptocurrency mining farms. The raids targeted facilities located near wastewater treatment plants, outlying forests, near urban landfills, and in private sector areas. Despite the sophisticated power equipment used by operators, none of the centers are authorized to connect to the power grid.
Authorities sued the operator, emphasizing the seriousness of electricity theft. If convicted, perpetrators could face significant prison sentences for their involvement in illegal cryptocurrency mining operations.
This crackdown highlights the ongoing battle against illegal cryptocurrency activity and highlights the need for regulatory enforcement to maintain integrity within the industry.
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