An underground mining farm has been dismantled in Kabardino-Balkaria

Recent events in Kabardino-Balkaria have once again drawn attention to the problem of illegal cryptocurrency mining. Regional energy officials uncovered an underground mining farm that caused nearly 6 million rubles in damage to power grids. This case highlights the growing problem of electricity theft for cryptocurrency mining in Russia.

Underground Farm Discovered

The underground farm was discovered in the village of Stary Cherek in the Urvansky District. Approximately 20 ASIC miners, used for cryptocurrency mining, were housed in abandoned buildings. All the devices were installed in special noise-cancelling enclosures, indicating an attempt to conceal the illegal activity from local authorities and energy officials.

According to Kabbalkenergo, a branch of Rosseti North Caucasus, the perpetrators illegally connected to the power grid and consumed 764,000 kilowatt-hours of electricity, causing 5.8 million rubles in damage. Company specialists discovered illegal connections in two dilapidated, non-residential buildings located on an abandoned site.

Legal Implications

The case is currently under police investigation, and a decision is being made to open a criminal case under the article "Causing Property Damage by Deception or Abuse of Trust on an Especially Large Scale" of the Russian Criminal Code. Underground miners face severe penalties, including imprisonment for up to five years.

Legislative Initiatives

This case is not isolated. In the fall, the Russian State Duma proposed measures to criminalize the theft of electricity during cryptocurrency mining. This underscores the authorities' growing concern about illegal activity in the cryptocurrency sector and its impact on the country's energy infrastructure.

In Conclusion

The dismantling of an underground mining farm in Kabardino-Balkaria serves as a reminder that illegal cryptocurrency mining remains a serious problem. Authorities and energy companies are actively working to identify and prevent such activities, which, in turn, may lead to stricter legislation in this area.