Ukraine, Russia Shut down Illegal Crypto Farms

Regulators in Ukraine and Russia have closed several illegal cryptocurrency mining farms allegedly utilizing stolen electricity. They located the underground mining farms in the capital cities, Moscow and Kyiv, and in Dagestan.

Russia Clamps Down Mining Farms in Dagestan and Moscow

Law enforcers and custom agents in Russia recently discovered increased electricity theft from the Rosset-operated network in Moscow Oblast, an area adjacent to the country’s capital. Tass revealed the news this week, citing Moscow Interregional Transport Prosecutor Office’s Ekaterina Korotkova. The official stated that an audit uncovered illegal connections to Russia’s power grid, electricity theft, and land seizure for operating equipment designed got cryptographic calculations related to crypto mining.

Korotkova detailed that the illegally used electricity to run the crypto mining hardware cost more than 500,000 rubles per day (nearly $7,000). Regulators have started a criminal case and plan a prosecution for the mining facility owner.

Authorities also busted two crypto farms in Dagestan, a Russian republic located in North Caucasus. Meanwhile, late November reports by Komsomolskaya Pravda newspaper indicated a large mining operation discovered in a mountainous area. Investigation’s preliminary data show that the illegal operators account for damages estimated at $13,000 (1 million rubles).

Local police also revealed a mining farm in Botlikh district and miners connected to the nation’s power grid without consent. According to the Forklog report quoting the interior ministry in Dagestan, the mining farm had been operating since November. Moreover, a Dakhadayevsky district resident aged 35 operated the farm and stole electricity worth $3,500 (257,000 rubles).

Illegal Mining Platform Uncovered in Kyiv, Ukraine

Lawmakers in Ukraine declared discovering an unauthorized mining farm in Kyiv Oblast. Law enforcement agencies in the country reported that three locals installed many ASICs in a rented hangar in Buchansky district, a region in the capital’s border. They have used electricity worth more than $128,000 (3.5 million hryvnias)

The increased crypto popularity has seen Ukraine leading in adoption, and the Authorities have been on steps to legalize digital coins. Though Ukraine hasn’t banned BTC mining, it is yet to regulate it. In 2021, regulators have clamped down on illegal miners using the nation’s power supply, shutting down several farms in different regions, including a top data center, last month.

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