An illegal crypto-miner in Russia has been accused of causing significant damage to a local power grid and siphoning off approximately $225,000 worth of electricity. The incident occurred in Yuzhno-Sakhalinsk, located in the Sakhalin Oblast in the Russian Far East, according to the Russian legal publication Pravo.
Sakhalinenergo, the power provider in the region, reported that its employees uncovered an illicitly connected transformer substation on the premises of a construction company. The crypto miner’s activities had a detrimental impact on the provider’s network infrastructure, resulting in substantial damage.
Details of the Unauthorized Mining Operation
The miner allegedly connected an undisclosed number of crypto mining rigs directly to the power grid, housing them within two container units. They also illegally linked a transformer substation with a capacity of 1250 kVA to the Sakhalinenergo networks, with the equipment’s total capacity estimated at 4 million kW/h.
The miner managed to bypass metering systems and did not declare their operations. Remarkably, the illicit mining setup operated unnoticed for an extended period, running from December 2021 to May 2022.
Legal Action Taken
Law enforcement launched a criminal case against the accused miner, who now faces charges of causing property damage on an especially large scale. As part of the legal proceedings, the alleged miner’s property has been seized.
Illegal cryptocurrency mining activities appear to be increasing in Russia, prompting power companies to become more vigilant in detecting individuals attempting to steal electricity from local grids.
In the cryptocurrency mining hub of Irkutsk, recent reports revealed that power companies had identified 430 cases of suspected electricity theft by illegal crypto miners. These companies estimated that approximately $3.3 million worth of electricity had been stolen by miners.
Diverse Locations of Illegal Mining
Illegal crypto farms have been discovered in various locations, including private homes, garages, balconies, high-rise building basements, and even the attic of a psychiatric hospital.
Illegal mining and electricity theft have continued to be pressing concerns in Russia, with reports of similar instances emerging from different regions, such as the Republic of Dagestan. These incidents underscore the challenges authorities and power providers face in combating unauthorized mining activities.
Earlier this year, experts in Russia noted the country’s growing prominence as a “crypto mining hotspot,” highlighting the increasing prevalence of mining operations within its borders.
