The Consequences of Crypto Mining in Russia
A crypto miner in Russia has caused significant damage to the local power grid and managed to steal approximately $225,000 worth of electricity. This incident took place in Yuzhno-Sakhalinsk, located in the Sakhalin Oblast. The power provider, Sakhalinenergo, discovered an illegally connected transformer substation on the premises of a construction company. The miner connected crypto mining rigs directly to the grid, housing them in two container units. By illegally connecting a transformer substation with a capacity of 1250 kVA to the Sakhalinenergo networks, the miner managed to accumulate a total capacity of about 4 million kW/h, bypassing metering systems and operating without declaring their activities.
Legal Consequences and Other Instances of Electricity Theft
The mining setup in question operated from December 2021 to May 2022. As a result, the police launched a criminal case against the alleged miner, charging them with causing property damage on an especially large scale. In a separate report, it was revealed that power companies in Russia had identified 430 cases of suspected electricity theft by illegal crypto miners, amounting to approximately $3.3 million worth of stolen electricity. These illegal crypto farms were found in various locations, including private homes, garages, balconies, basements of high-rise buildings, and even the attic of a psychiatric hospital.
Hot Take: The Growing Issue of Crypto Mining and Power Theft
These incidents highlight the challenges and risks associated with crypto mining, particularly when it comes to electricity theft. As the popularity of cryptocurrencies continues to rise, it is crucial for authorities and power providers to implement stricter regulations and monitoring systems to prevent such illegal activities. Additionally, it is essential for individuals involved in crypto mining to adhere to legal and ethical practices to ensure the sustainability and legitimacy of the industry.
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