Illegal Mining Activities Cost Russian Energy Providers $6.6 Million

Illegal Bitcoin Mining Operations Cost Russian Energy Providers Millions

In a shocking revelation, state-owned power grid company Rosseti has uncovered a widespread scheme by “black” miners to steal nearly $6.6 million worth of electricity from local energy providers over the past three years. The illegal operations involved illegally built power stations, tampered power meters, and underground mining farms.

According to Rosseti, these illicit mining farms were able to siphon off electricity without detection by tapping into the local power grids without any contracts in place. The mining operations were often set up in existing businesses, such as factories, where the owners sought to make extra income on the side.

However, the mining farms were not limited to industrial settings. Some were found in garages, rented offices, and even a former farm that was originally used for food production. In one extreme case, a power transforming station was buried underground in a public forest to avoid detection.

To further conceal their activities, the miners tampered with power meters to make it appear as though they were consuming less electricity than they actually were. This allowed them to operate thousands of mining machines without raising suspicion.

Since 2017, Rosseti has identified 35 cases of illegal power consumption in 20 regions of Russia. Each case has been reported to law enforcement for further investigation. The company has implemented measures to detect anomalies in power consumption patterns and inspect power lines for signs of unauthorized mining operations.

In a related development, Rosseti has also uncovered instances of illegal crypto mining taking place in unexpected locations, such as a nuclear research institute and a local utility provider’s website. As the company continues to crack down on illegal mining activities, they are also exploring the use of blockchain technology to improve the monitoring of power consumption data.

The revelation of these illegal mining operations highlights the challenges faced by energy providers in combating unauthorized use of electricity for cryptocurrency mining. As the demand for cryptocurrencies continues to rise, it is crucial for companies like Rosseti to stay vigilant and proactive in protecting their resources from exploitation.