Russian Authorities Seize 500 Crypto Mining Rigs in Raid on BTC Mining Hotspot
Russian authorities say they have seized 500 crypto mining rigs in a raid on the Bitcoin (BTC) mining hotspot of Irkutsk.
Per the news agency TASS, a group of crypto miners caused over $2.3 million of “damage.”
The Investigative Committee of the Russian Federation for the Irkutsk Region said on July 19 that it found the mining equipment in properties belonging to dacha and summer cottage “community members.”
The committee said the rigs belonged to “residents of the Uyutnoye dacha community and the Molodezhnoye cottage village in the Irkutsk Region.”
Investigators said the residents used power “from electrical networks supplying the citizens” of the Irkutsk Oblast.
Although the miners did not steal their electricity from the grid, they allegedly “paid for electricity consumption at the preferential rate for households.”
This indicates a major shift in the Russian crypto mining sector. Until recently, Russian authorities targeted miners stealing power using illegal connections.
Crypto mining still has no legal status in Russia, despite recent efforts to legalize and tax industrial mining firms.
However, power providers have complained that their grids are under pressure in many parts of the country. This list of areas includes Irkutsk.
Last week, President Vladimir Putin addressed the issue, claiming that regions such as Irkutsk needed the authority to clamp down on crypto miners.
Irkutsk is one of the biggest cities in Siberia. Its citizens enjoy some of the lowest electricity rates in the nation.
Miners have traditionally been attracted to the region for its famously cold winters, ideal for reducing cooling costs.
Putin suggested that Irkutsk and other regions could respond by banning crypto mining in certain areas.
The President
Read more on cryptonews.com
