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Illegal Crypto Mining Discovered In Russia As Authorities Prepare for New Penalties

Published by
Elena R and Sohrab Khawas

On June 11, a KAMAZ truck was discovered in Russia’s Republic of Buryatia operating an illegal cryptocurrency mining. The setup in the truck was connected to a 10 kilovolt power line without permission. This illegal activity comes at a time when the russian officials are preparing to introduce harsher penalties. 

Discovery of Illegal Crypto Activity– Everything You Need to Know

On Wednesday, Russian Inspectors found 95 mining devices and a transformer substation, capable of powering an entire village.  While the officials were reaching the scene, two unidentified individuals fled the scene in an SUV without a trace. 

This illegal crypto operation was found during a line inspection in the Pribaikalsky District, marking the sixth case of electricity theft linked to crypto mining in Buryatia.  

What Actions Did the Russian authorities take?

Russian authorities present at the scene have seized the mining rigs, and the equipment has been confiscated while pursuing legal action against the activity. The authorities are taking important steps to dismantle the illegal mining operations while promoting the legal pathway. 

An analyst stated– 

“It will be cheapest to carry out this type of activity within the limits allocated [by law] in 2025 in the Republic of Khakassia. In total, monthly consumption of 6,000 kWh in an apartment with an electric stove will cost 162 thousand rubles per year, and 157 thousand rubles in a house with electric heating.”

Penalty for Illegal Crypto Mining in Russia

Russian authorities are preparing new harsh penalties for illegal cryptocurrency mining. It includes fines ranging from 100,000 to 2 million rubles (approx $1,272–$25,456).  This penalty fee is applied to solo entrepreneurs, officials, and corporations, while industrial offenders see their mined crypto confiscated by the state. 

Besides this, Authorities are also targeting crypto payments made outside the Central Bank’s sandbox and imposing a fine up to 1 million rubles ($12,718). 

Final Thought

This illegal crypto in a KAMAZ truck is not the only discovery of the day, as another unauthorized crypto mining operation in an abandoned building in Russia was discovered on the same Wednesday. The illegal farm in the building in Taksimo was connected to a power grid without permission and was operating without a meter. These illegal crypto mining and trading have cost millions of rubles to the russian government, prompting them to take severe actions. 

FAQs

Why do illegal crypto mining operations pose a risk to local communities and power infrastructure?

They overload grids, causing voltage drops, blackouts, and financial losses for power companies, directly impacting residents’ power reliability.

What are the environmental and social impacts of electricity theft for crypto mining?

Electricity theft for crypto mining increases carbon emissions, strains local power grids, and can lead to disruptions and higher energy costs for legitimate users.

Are there incentives for legal, small-scale crypto mining in Russia’s regions?

Yes, individual miners can operate without registration if energy consumption is below regional limits, potentially benefiting from lower taxation in some areas.

Elena R and Sohrab Khawas

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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