A major Russian power company, Rosseti, lost a whopping $14.2 million due to illegal cryptocurrency mining. These unauthorized operations tapped directly into their power grid, causing significant problems.
The Impact of Illegal Mining
The illegal mining operations were widespread, hitting areas like the North Caucasus, Novosibirsk, and the Volga region particularly hard. Rosseti found and shut down 130 illegal connections, leading to over 40 criminal investigations.
This wasn’t just about lost money. The illegal miners caused serious electrical problems, including frequent power outages and voltage drops that damaged equipment. One warehouse in Karachay-Cherkessia alone housed nearly 200 mining systems, gobbling up over 12,000 kWh of electricity and annoying local residents.
The scale of these operations was huge, ranging from small setups in rented containers to massive facilities hidden in underground parking lots. A single bust in Novosibirsk uncovered over 3,200 mining devices, resulting in a $2 million loss.
The illegal mining also impacted regular customers, causing power fluctuations and lower voltage, leading to frustrated customers and increased maintenance costs for Rosseti.
Fighting Back Against Illegal Mining
Rosseti is cracking down, working to identify and shut down illegal operations. They’ve handed over evidence to law enforcement, resulting in multiple criminal charges. They’re also pushing for stricter regulations and enforcement to prevent future incidents. Russia has even started implementing seasonal bans on crypto mining in certain areas.
