Authorities in Russia and Ukraine have shut down a number of illegal crypto mining facilities allegedly powered by stolen electricity. Underground farms have been discovered around the capitals, Kiev and Moscow, as well as in the Russian republic of Dagestan.
Russia destroys illegal mining farms in Moscow and Dagestan region
Russian law enforcement and customs officers have recently discovered the theft of a large amount of electricity from the network operated by rosseti in the Moscow Oblast, the region adjacent to the capital of Russia. Tass broke the news about the operation this week, citing Ekaterina Korotkova of the Moscow Interregional Transport Prosecutor's Office. The official explained:
An audit revealed an unauthorized connection to the electricity grid, theft of electricity and illegal taking of land for the operation of equipment designed to perform cryptographic calculations related to the mining of digital currencies.
The cost of illegally consumed electricity used to power mining hardware exceeds 500,000 rubles per day (almost $ 7,000), Korotkova detailed. The authorities have started a criminal case and intend to prosecute the owners of the coin minting facility.
Two cryptocurrency farms in Dagestan, a republic of Russia located in the North Caucasus, were also destroyed. In late November, the Komsomolskaya Pravda newspaper reported that a large mining operation had been found in a mountainous region. Preliminary data from the investigation suggests that its unknown operators have caused damage of an estimated 1 million rubles (more than $ 13,000).
Local police have also discovered a mining company in the Botlikh district where miners were connected to the network without permission. According to a Forklog report citing the Dagestan Ministry of the Interior, the cryptocurrency farm had been created since November and was run by a 35-year-old resident of the Dakhadayevsky district who stole 257,000 rubles worth of power (about $ 3,500). .
The law "On Digital Financial Assets", which came into force in January, regulates some activities related to cryptocurrencies in the Russian Federation, but cryptocurrency mining, among others, is not one of them. This year, calls have increased among Moscow officials to recognize the company as a business activity and tax it accordingly.
An underground cryptocurrency farm is found in the Kiev region, Ukraine
Meanwhile, the Security Service of Ukraine (SBU) Announced On Friday he had discovered an illegal mining facility in Kiev province. According to Ukraine's main law enforcement agency, three local residents have installed various SO C in a hangar that they rented in the Buchansky district of the border region with the capital. They have reportedly used electrical power worth 3.5 million hryvnia (more than $ 128,000).
The growing popularity of cryptocurrencies has made Ukraine a leader in adoption in recent years and the government has been taking steps to legalize "Virtual assets". While bitcoin mining is not prohibited, is not yet regulated. This year, the SBU has been going after miners who take advantage of the country's power grid, Turning off a number of crypto farms in various regions, including one big data center in central Ukraine last month.
Do you expect Russia and Ukraine to regulate cryptocurrency mining in the near future? Let us know in the comment section below.
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