Ukraine’s main law enforcement agency has busted an illegal facility mining cryptocurrencies in the Kharkiv region. Agency said that the operators of the cryptocurrency farm were minting large quantities of stolen electricity to make coins, which could threaten energy supply and critical infrastructure.
Unlawful Mining Farm Found in War-Torn Kharkiv Region
Security Service of Ukraine officers discovered an underground crypto-mining center in Kharkiv’s eastern region and shut it down. This was the site of fighting between Ukrainian forces and the invading Russian army.
The operation was carried out by the SBU’s Cyber Security Department, working together with the National Police of Ukraine and under the supervision of the Kyiv Holosiiv District Prosecutor’s Office.
The press release, published Tuesday, stated that the cryptocurrency farm consumed large amounts of unpaid power, which was worth thousands of dollars (thousands) of dollars.
According to Ukrainian authorities, the operation may have caused severe interruptions in energy supply for residential areas as well as critical infrastructure near the frontline.
Investigators revealed that the mining hardware had been installed by several local residents in a rented warehouse near Kharkiv, Ukraine’s second-largest city. The mining equipment was connected to the grid by the local residents without authorization.
Agents from the Security Service of Ukraine confiscated computers and other specialized equipment during the search.
In the course of pre-trial investigations, all suspects involved in the illegal cryptocurrency mining operation will be notified. The case will then be reviewed by the court.
Ukraine is a leader regionally in crypto adoption. The government of Kyiv took steps to legalize virtual asset transactions. Crypto mining, however, needs further regulation as it’s still a gray zone.
The SBU has been going after miners exploiting the country’s electricity network and shut down a number of crypto farms in various regions since last year. Others illegal activities related to crypto have also been taken into consideration. Last year, for example, several online cryptocurrency exchangers were arrested, accused of sending money to Russian accounts.
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