Russia's Ural Region Detects 10,000 Illegal Mining Rigs, Resulting in Nearly 1 Billion Rubles in Stolen Electricity Fees

BlockBeats News, June 2nd. According to Bits.media, a large illegal cryptocurrency mining farm was discovered in Nizhny Tagil, Sverdlovsk Oblast, Russia, and the neighboring Kushva area. The mining farm was hidden in an abandoned industrial park, with approximately 10,000 mining rigs deployed. The operation was shut down through a joint action by the Federal Security Service (FSB), local police, and the power company.

The local power company estimated that the mining farm's prolonged unauthorized electricity consumption caused losses of nearly 1 billion rubles (approximately $12.7 million). Investigators stated that the scale of its power usage could satisfy the lighting needs of a small city. Law enforcement has arrested 3 suspects, who are currently under house arrest, and they are being investigated for the crime of "causing property damage through deception or abuse of trust." Under Russian law, the individuals involved could face up to 5 years in prison.

The investigation revealed that the operators of the mining farm tapped into the power grid through intermediaries and allegedly tampered with electricity meter data to conceal the true power usage. Authorities stated that the actual electricity consumption of the mining farm was about twice the approved capacity. The local energy department initially launched an investigation due to frequent voltage fluctuations, power outages, and equipment failures in the abandoned factory area, eventually pinpointing the location of the mining farm. A local TV station also produced a documentary titled "Mining" to document this operation.