Dagestani law enforcement officials and others have taken more than 1500 machines from illegal crypto farms. Government agencies in the republic, considered one of Russia’s capitals of underground coin minting, carry out regular raids against such facilities.
Cryptocurrency Miners in Dagestan Accused of ‘Illegal Entrepreneurship’
Officers from the Ministry of Internal Affairs of Dagestan and the Federal Security Service have uncovered a large crypto mining farm in the Russian republic’s capital city, Makhachkala, Tass news agency reported, quoting the ministry. According to a press release, 1,476 devices that produce digital currencies were taken by the law enforcement agents.
According to the department, the illegal owners had also been providing services for other miners such as installing mine rigs and connecting them to power grids. They even provided security. Experts now work to determine the value and consumption of electricity as well as their market values.
Further, the law enforcement officers who raided this crypto farm noted that they were gathering evidence to bring the operators on trial under Art. 171 of the Criminal Code of the Russian Federation, “Illegal entrepreneurship,” and part 2 of Art. 165, “Causing property damage by deception or abuse of trust.”
Dagestan, Russia’s Krasnoyarsk Krai, and Irkutsk Oblast, has been a hub for home and illegal crypto mining over the last few years. They have experienced blackouts as a result of electrical network failures in areas that aren’t designed to handle excessive loads.
In another case, the local power grid operator and distributor, Rosseti Severniy Kavkaz, recently found 95 rigs minting cryptocurrency at a facility of the republic’s water supply utility, Мahachkala Vodokanal. At the Vuzovskoe Ozero pumping station, hardware was mounted in a metal container.
The power of the crypto farm was 260 kW. Its illegal electricity use exceeded 4.5 millionkWh. That is more than 26,000,000 rubles, or over $400,000 Rosseti announced that the farm was created by Dagestan’s capital resident who collaborated with water utility employees.
Moscow has taken measures to regulate crypto mining. This is a lucrative business that Russia offers, with its abundant energy resources and favorable climate. The State Duma is currently reviewing a bill that will achieve this goal. In the meantime, Russia’s antimonopoly agency suggested that higher electricity rates be introduced to those who mine at home in order to reduce mining using household electricity.
Do you expect authorities in Russia’s Dagestan to continue to crack down on cryptocurrency miners? Let us know your thoughts in the comment section.
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