A Siberian power company has been fined for illegally leasing state land intended for public utilities to an illegal crypto-mining operation.
A statement from the Irkutsk Region Prosecutor-General&rsquo;s Office said that the power provider was fined over 330,000 rubles (about ₹2.4 lakh), amid Russia&rsquo;s continuing crack down on illegal cryptocurrency mines. The firm would also face an administrative case, officials added.
Crypto mining is legal in Russia, which was named thae world&rsquo;s second-largest Bitcoin miner in 2023, generating over $3 billion in Bitcoin and collecting roughly $550 million in tax revenue. However, not only do unauthorized mines evade taxes, the high power consumption needed for crypto mining puts a strain on the electricity grid, leading to outages and disrupting daily life.
President Vladimir Putin has also flagged the issue. In July, he warned that illegal crypto mining accounts for nearly 1.5% of Russia&rsquo;s total electricity consumption, a figure that continues to rise. To evade detection, some mining operations have gone underground, literally and figuratively.
Next year, Russia plans to impose a six-year ban on crypto mining in 10 regions and introduce seasonal restrictions in cold areas like Irkutsk--where the climate, combined with cheap electricity, makes for a crypto mining hotspot.
Authorities in Irkutsk confiscated hundreds of mining rigs last year to deter disruptions.
Yet, illegal mining persists.
Now, the discovery of an illegal mine on state land controlled by an electrical utility has added a new dimension to the issue. The utility company&rsquo;s involvement raises questions about the oversight and governance of critical infrastructure. While the Prosecutor-General&rsquo;s Office did not name the utility in question, the revelation underscores the challenges authorities face as they attempt to root out illegal mining operations.&nbsp;
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Amid crackdown, power co fined 330K rubles for leasing land to miner linked to outages

Russia Finds Illegal Crypto Mine on State Land

Amid crackdown, power co fined 330K rubles for leasing land to miner linked to outages

December 31, 2024 | 16:01 IST