Hardware Worth $1.9 Million Stolen in Russia’s Crypto Mining Capital – Mining Bitcoin News

Russian police are looking into the possible theft of around $1.9million worth of mining hardware. A powerful computer equipment was taken from Irkutsk’s crypto mining hotel. Its owners were accused of fraud on a large scale.

100 Russians are unable to mine 100 Milliard Rubles worth of mining equipment

Police in the Russian Irkutsk Oblast have launched an investigation of the operators of a mining hosting facility suspected of defrauding clients and stealing their expensive coin minting hardware, Tass news agency reported, quoting the region’s Main Directorate of the Interior Ministry.

Law enforcement officers explained that the miners gave their equipment to the people running the hotel in anticipation of making quick cash. They stopped making payments to customers, and they refused to return their expensive machines.

“A criminal case was initiated based on these facts under part 4 of article 159 of the Criminal Code of the Russian Federation (large scale fraud). Various material evidence, including computer equipment and documentation, was seized from their office,” a statement detailed.

Investigators were able to determine that the suspects lured individuals who desired to place their coin-mining equipment in a hotel. This was between November 2021 to May 2022. These people were offered electricity and rent at rates that were much lower than actual market rates.

The miners were also asked to quickly hand their equipment over, as they had limited space for renting. They did not inform the owners of the equipment, nor could they be contacted by the hosting agency.

Russian police have begun to hunt for these fraudsters. They have claimed that around 100 victims suffered financial losses as a result of their actions. Their losses were estimated at close to $1 million.

The region of Irkutsk offers some of the most affordable electricity rates, beginning at $0.01/kWh in rural areas. This has led to a surge in crypto mining. Many farms are located in basements or garages, and power with subsidised household electricity.

This is largely why the oblast was called the Russian mining capital. In the early part of this year, electricity companies complained that there was a spike in energy consumption in residential areas. This was attributed to home mining.

Russian media has reported that planes carrying second-hand Chinese mining equipment have continued to land in Russia this year. However, cases of hardware theft are on the rise. Russia plans to allow crypto mining, which will be able to take advantage of its cool climate and abundant energy resources.

Are you expecting more fraud cases related to cryptocurrency mining in Russia? Please comment below to share your views.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.