Law enforcement authorities in Russia’s Sverdlovsk region have dismantled a network of illegal cryptocurrency mining farms that caused significant financial damage to a major energy provider. According to the Ministry of Internal Affairs, losses exceeded 16 million rubles due to unauthorized electricity consumption.
The illegal operations were uncovered in the cities of Nizhny Tagil and Kushva. Investigators found that the organizers connected mining equipment directly to power infrastructure, bypassing meters and supply contracts. As a result, electricity was consumed without payment over an extended period.
Scale of the Illegal Mining Operation
During coordinated searches at multiple locations, police officers seized more than 10,000 mining devices. The equipment consisted mainly of industrial ASIC miners designed for Bitcoin mining. Authorities believe the scale of the operation indicates long-term and well-organized activity.
Three individuals suspected of organizing the illegal mining farms were detained. Investigators say the group managed equipment deployment, power connections, and technical maintenance. The suspects are currently under house arrest while the investigation continues.
Criminal Charges and Broader Impact
A criminal case has been opened under Article 165, Part 2 of the Russian Criminal Code. This provision covers property damage caused through deception or abuse of trust. If convicted, the defendants could face up to five years in prison.
Industry analysts note that illegal Bitcoin mining remains a serious challenge for power grids. Such operations increase network load, raise the risk of outages, and shift costs onto legitimate consumers. Therefore, Russian authorities are expected to intensify oversight of mining activities, especially in regions with high industrial electricity demand.