Seizing Illegal Crypto Mining Rigs in Siberia: What You Need to Know
Police raids on four significant “illegal” data centers in Siberia have led to the seizure of over 3,200 crypto mining rigs. The mining center operators are facing criminal charges, indicating a crackdown on unauthorized crypto activities in the region.
Illegal Crypto Mining ‘Network’ Disrupted in Novosibirsk
Rosseti, the Russian power provider, revealed that these centers were part of an interconnected “network” of illegal crypto mining operations. Estimates suggest that the miners had unlawfully consumed around $2.1 million worth of electricity from the Novosibirsk grid.
- The centers were strategically located in various parts of Novosibirsk city.
- During the raids, nine power transformers and 3,225 cryptocurrency mining devices were confiscated by the police.
Discovery of Crypto Mining Farms Across the City
Authorities uncovered multiple mining farms in Novosibirsk, including facilities near a wastewater treatment plant and in the outskirts of the Leninsky District. The raids also targeted a farm near a city landfill and another in a private sector area.
- All four farms were equipped with modern power equipment but were unlawfully connected to the power grids.
- Despite lacking legal connections, the operators managed to engage in massive electricity theft on an industrial scale.
Continued Crackdown on Illegal Crypto Mining
Recent months have seen an intensified crackdown on illegal crypto mining operations by power firms and law enforcement authorities in Siberia. Similar efforts targeting unauthorized mining activities have also been reported in other regions.
- In February, a significant illegal crypto mining farm with 100 ASIC miners was discovered on the outskirts of Novosibirsk.
- Efforts to tackle illegal mining have extended to Irkutsk Oblast and other Russian cities like Krasnoyarsk, Omsk, and Khakassia.
Hot Take: Tackling Unauthorized Crypto Activities for a Safer Industry
Authorities in Siberia have taken a firm stance against illegal crypto mining operations to protect the integrity of the industry and prevent massive electricity theft. By conducting raids and shutting down unauthorized mining farms, they aim to establish a safer and more regulated environment for cryptocurrency mining in the region.
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