Russian Police Seize Over 3,200 Crypto Mining Rigs in Siberia Raids – April 11, 2024

Russian police have made a major bust in Siberia, seizing over 3,200 crypto mining rigs in raids on four large “illegal” data centers. The Novosibirsk branch of the Russian power provider Rosseti reported that the mining center operators are facing criminal charges for their activities.

According to Rosseti, the data centers were part of an interconnected “network” operating in different parts of the city of Novosibirsk. The power firm estimated that the miners stole a total of $2.1 million worth of electricity from the grid.

During the raids, police officers confiscated nine power transformers and thousands of cryptocurrency mining devices. The city of Novosibirsk, along with Irkutsk, has become a major hub for Russia’s growing crypto mining industry. However, power providers have been cracking down on illegal mining operations that steal electricity from the grid.

The police in Novosibirsk shut down the operations of all four crypto farms simultaneously in the recent raids. The mining farms were found in various locations around the city, including near a wastewater treatment plant, in a forest on the outskirts, near a city landfill, and in a private sector area.

Officials noted that the operators of the illegal mining farms were using industrial-scale electricity theft and could face jail time if convicted. This crackdown on illegal crypto mining is part of a larger effort by authorities to combat unauthorized mining operations across Russia.

In related news, Marathon Digital CEO Fred Thiel expressed excitement for Bitcoin’s upcoming halving and discussed the state of Bitcoin mining and Marathon’s growth strategy in a recent interview on Bloomberg Crypto.

The crackdown on illegal crypto mining continues in Siberia and beyond, with authorities shutting down numerous operations in recent months. Energy specialists and law enforcement officers have been working to dismantle illegal mining farms and hold operators accountable for stealing electricity from the grid.

Overall, the fate of the industrial mining industry in Russia remains uncertain as authorities work to regulate the sector and ensure compliance with laws and regulations. Major firms are looking to work with the government on national IT projects and contribute to the development of state-of-the-art data centers. Stay tuned for further updates on the evolving crypto mining landscape in Russia.