Illegal mining

Main article: Cryptocurrency mining

Not to be confused with Hidden Mining (crypto-jacking)

2024: In Dagestan, energy dialogs began to create underground mining farms

In Dagestan, a new method of illegal use of electricity was recorded - power dialogs began to create underground mining farms. These underground cryptocurrency installations, housed in hidden places, have already caused a number of serious incidents, including a fire at the Novaya substation in, To Makhachkala which caused power outages in part of the city. This was announced in September 2024 by the press service of the Government of the Republic of Dagestan on the official page Telegram following a meeting on the preparation of facilities power engineering specialists HOUSING AND PUBLIC UTILITIES and the region.

According to TASS, Prime Minister Abdulmuslim Abdulmuslimov appealed to the leadership of Rosseti North Caucasus with a demand to strengthen measures to combat illegal mining. He noted that the owners of crypto installations continue to invent new ways to bypass the law, installing their farms underground and in hard-to-reach places. The meeting also heard information that about ₽3 billion have already been invested in the repair of the republic's energy infrastructure, of which ₽1,5 billion were allocated from the regional budget on behalf of the head of Dagestan, Sergei Melikov.

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Bloomberg

Clandestine mining farms pose a major challenge to the region's energy system. The increase in their number leads to overload of power grids, which in the end can cause accidents like the recent one in Makhachkala. In addition, such activities make it difficult to plan energy consumption, which negatively affects the inhabitants of the republic. The Deputy Prime Minister of Dagestan stressed that the regional authorities will continue to strengthen control over illegal mining, as well as coordinate actions with law enforcement agencies to suppress such cases.

The video published by the press service of the republic shows one of these cryptocurrency farms. The room is located underground and equipped with a narrow corridor and a small working area with equipment for mining. cryptocurrencies These installations continue to attract attention not only because of their scale, but also because of potential threats to the security of both the infrastructure and the population of the region.^[1]

2023

In the Moscow region, a case was opened about missing mining equipment, which disappeared after the seizure by the police

On March 18, 2024, it became known that the Naro-Fominsk department of the Main Investigative Directorate of the Investigative Committee of the Russian Federation in the Moscow Region opened a criminal case of negligence (part 1 of article 293 of the Criminal Code of the Russian Federation) against officials of the Ministry of Internal Affairs. The investigation is related to the disappearance of mining equipment, which was seized by the police from cryptocurrencies.

According to the Kommersant newspaper, in April 2022, a mining farm was liquidated in the Voskhod-1 SNT located within the city district. Criminal investigators received "operational information" about the facts of theft of electricity. At one of the sites of the specified SNT, several cabins with equipment for mining cryptocurrency were found. At the same time, the electricity metering device in the transformer substation serving the SNT turned out to be faulty.

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Unsplash

Police seized 68 computers and other equipment. However, instead of a material evidence warehouse, the equipment was placed in the hangar of a local entrepreneur. Moreover, during the seizure, the computers were neither rewritten nor sealed. According to the materials of the case, the operatives simply "did not have a room for storing equipment," and therefore the head of the criminal investigation department of the Internal Affairs Directorate Vyacheslav Orlikov, by oral agreement, transferred it to the safekeeping of "IP Saakov A. A." Subsequently, the garage-type hangar was opened, and the mining equipment disappeared.

The owners of the equipment insist that they did not violate the law. Mining itself is not illegal, and the cabins, as it was established, were rented by miners through an entrepreneur working in the real estate market, and it was he who found the plot in SNT "Voskhod-1." The contract stated that equipment would be placed in the cabins. At the same time, the fee, including electricity costs, had to be paid by the tenant according to the accounts from the owner of the site. Nevertheless, the damage (the cost of the electricity received) was estimated by the investigator at more than 700 thousand rubles.

The owner, who was never able to return his equipment, turned to the prosecutor's office and the TFR, where, in connection with "violation of job descriptions and current regulatory legal acts regulating the procedure for storing seized items," a negligence case was opened.^[2]

Director of a mining company in Tuva received a term for stealing electricity

On December 14, 2023, Rosseti Siberia (a subsidiary of Rosseti PJSC) announced that in Tuva, the director of a limited liability company received a term for stealing electricity when mining cryptocurrency. The amount of damage caused exceeds 2 million rubles.

According to the case file, the 54-year-old woman led a legal entity related to illegal mining. Having owned non-residential premises in the city of Kyzyl, the defendant rented out a small pavilion in which equipment for mining cryptocurrency was placed. These are 36 Asik S9 sets with power supplies, switches, a Wi-Fi router with a built-in cellular modem, cables, etc. For each placed device "Asik S9" for the extraction of bitcoins, the woman received 1,500 rubles from the tenant, but this money was not enough to cover electricity costs. Therefore, the meter was disabled.

Asik S9 Mining Block

It turned out that the pavilion in which the mining equipment was located belonged to the son of the suspect, who organized cryptocurrency mining activities together with his acquaintances, on the right of use. The investigation established that the woman transmitted to Tyvaenergosbyt deliberately underestimated indicators of energy consumption from October 2020 to March 2022.

A total of 350,400 kV·ch of energy were stolen in the amount of 2,060,352 rubles. Law enforcement agencies on the fact of theft opened a criminal case under article 165 of the Criminal Code of the Russian Federation "Causing property damage to the owner or other owner of property by deception in the absence of signs of theft, which caused especially large damage." The court convicted, imposing a sentence of one and a half years probation for the woman with a probationary period of one year. On the territory of the Siberian Federal District, this is the first criminal case related to cryptocurrency mining, which received an indictment, and the second in the history of Russian legal proceedings (as of the end of 2023).^[3]

Cryptocurrency miner from Yuzhno-Sakhalinsk convicted of stealing electricity worth 22 million rubles

A resident of Yuzhno-Sakhalinsk created a mining farm and damaged the Sakhalinenergo enterprise in the amount of 22 million rubles, illegally connecting to the power grids. This was reported in the press service of the Russian MIA Administration for the Sakhalin Region on September 1, 2023.

It is noted that a 37-year-old man from Yuzhno-Sakhalinsk connected to the networks from December 2021 to May 2022. Power engineers discovered an illegally connected transformer substation on the territory of a construction company, two containers were powered from it, where the mining farm was located.

Cryptocurrency miner from Yuzhno-Sakhalinsk convicted of stealing electricity worth 22 million rubles

It was established that by his criminal actions, the accused, from the beginning of December 2020 to the end of May 2022, carried out unaccounted electricity consumption with a total capacity of almost 4 million kW/h for a total of almost 22 million rubles, the Ministry of Internal Affairs said in a statement.

By the beginning of September 2023, investigators of the SCh SU of the Ministry of Internal Affairs of Russia in the Sakhalin Region completed the investigation of the criminal case. The case under the article on causing property damage on an especially large scale (Criminal Code of the Russian Federation Article 165) was transferred to the South Sakhalin City Court, the property of the defendant was seized.

Earlier, Sakhalinenergo published pictures of the equipment of a mining farm, the activities of which were stopped on the territory of one of the construction companies. Two 40-foot containers were found on the spot. Miners were recognized during a check of unaccounted electricity consumption, which at that time amounted to 240 kW. The total damage was first estimated at 3 million rubles, but after the investigation, this amount was increased by more than seven times.^[4]

In Dagestan, miners stole electricity for 23 million rubles in six months

In January-June 2023, miners stole 5.7 million kWh of electricity in Dagestan for a total of 23 million rubles. This was reported on August 7, 2023 by Rosseti North Caucasus.

According to one of the precedents, a criminal case has already been initiated under Part 2 of Art. 165 of the Criminal Code of the Russian Federation (causing property damage by deception or abuse of trust). On the territory of Dagestan-Ethanol LLC in the city of Makhachkala, a working group discovered 341 devices for mining cryptocurrency. The volume of illegally consumed energy resource here amounted to more than 1.5 million kWh for 1.5 million rubles.

Miners stole 5.7 million kWh of electricity in Dagestan

The company "Rosseti North Caucasus" reported that for each fact, power engineers drew up acts on unaccounted consumption. Together with the relevant statements, they were sent to law enforcement agencies to take further measures within the framework of the current legislation.

The company recalled administrative and criminal liability for the theft of electricity. According to Article 7.19 of the Code of Administrative Offenses of the Russian Federation, unauthorized connection to networks, as well as unauthorized (unaccounted for) use of electricity entails an administrative fine for citizens in the amount of 10 to 15 thousand rubles; legal entities? from 100 to 200 thousand rubles. Criminal liability for the theft of electricity provides for the punishment under Art. 165 of the Criminal Code of the Russian Federation in the form of imprisonment for up to two years.

The actions of power conversations introduce the network complex into the zone of increased risk, since unaccounted consumption becomes the reason for exceeding the maximum permissible load on equipment. This is one of the main causes of technological disruptions and low voltage in the network. In addition, the lack of payment for the used energy resource hinders the modernization of the region's energy system, the press service of the energy operator added.^[5]

Dagestan police confiscated 773 mining devices illegally connected to power grids

Law enforcement agencies of Dagestan confiscated 773 mining devices illegally connected to power grids. This was reported on August 4, 2023 in the regional Ministry of Internal Affairs.

District police officers in the village of Novoye-Gadari, Kizilyurt district, discovered a mining farm belonging to a 47-year-old local resident. It was revealed that for the production of digital currency, a man equipped a non-residential premises on the territory of a peasant farm. Having issued everything in accordance with legal requirements, the owner nevertheless drew a second line, supplementing the mining farm with an unauthorized connection. The equipment was seized. The volume of stolen electricity and its cost by August 4, 2023 are unknown, and it is also not reported whether a criminal case was initiated into the theft of electricity.

Earlier, officers of the Ministry of Internal Affairs and the FSB discovered a large mining farm in Makhachkala, the press service of the Ministry of Internal Affairs in the Republic of Dagestan reported.

During the events, the illegal functioning of mining farms was discovered, 1,476 high-performance devices were seized that produced digital currency, - said the employees of the department.

The police clarified that the owners of the mining farms provided paid services for accommodation, energy supply and ensuring the safety of devices that produce digital currency. Experts will establish the cost of the seized equipment and the total amount of illegally consumed electricity. The police collect material under Part 2 of Art. 171 of the Criminal Code of the Russian Federation "Illegal entrepreneurship" and Part 2 of Art. 165 of the Criminal Code of the Russian Federation "Causing property damage by deception or abuse of trust."^[6]

Miners in Moscow stole electricity worth 33 million rubles from Rosseti

At the end of May 2023, it became known about the theft of electricity in Moscow - unknown miners connected to a transformer substation on Ryazan Prospekt and used it to extract cryptocurrency.

According to the Telegram channel Baza, miners connected their equipment to the substation in the fall of 2022 and worked until February 2023. For several months, they spent electricity at 6.6 million kWh, which is equivalent to 33.1 million rubles.

Unknown miners connected to a transformer substation on Ryazan Prospekt and used it to mine cryptocurrency

When abnormal electricity costs were found in Rosseti, they turned to the police. On the fact of the theft of energy, a criminal case was initiated under article 165 of the Criminal Code of the Russian Federation ("Causing property damage by deception or abuse of trust"). However, by the end of May 2023, it was not yet possible to get on the trail of the attackers.

In early April 2023, the police of the Irkutsk region closed the underground "mining hotel," which housed more than 200 devices. The total damage to power engineers was estimated at 6 million rubles: the farm managed to spend 1.5 million kilowatt-hours. A criminal case was initiated against the organizer under Part 2 of Article 165 of the Criminal Code of the Russian Federation "Causing property damage by deception or abuse of trust."

The detainee faces up to five years in prison. It is a 34-year-old resident of the city of Cheremkhovo, who, under the guise of the work of a telecommunications company, equipped a "mining hotel."^[7]

An illegal miner who stole electricity for 7 million rubles was detained in Chuvashia

In Chuvashia, law enforcement officers in April 2023 discovered an illegal mining farm on one of the land plots, whose owner stole electricity for about 7 million rubles.

According to the Ministry of Internal Affairs, representatives of the Chuvash energy sales company noticed an unusually high consumption of electricity. As a result of the check, police found and seized the equipment of more than 40 miners.

The maximum punishment that a resident of Chuvashia faces is imprisonment of up to five years and a fine.

Miner burned down in the bathhouse in which he mined cryptocurrency

A miner from the Irkutsk region died on the night of February 14 due to a fire in a crypto farm. The entrepreneur mined cryptocurrency on the veranda of his bath. Due to the high power consumed by the equipment, the wiring caught fire. The owner, who was at that time on the attic of the bath, could not get out of the burning building.

Russian stole mining equipment for 10 million rubles and received a term

In Krasnoyarsk, a court sentenced a local resident accused of stealing mining equipment. The press service of the prosecutor's office of the Krasnoyarsk Territory announced this on February 14, 2023.

The investigation and the court found that from November 2021 to January 2022, a man stole 40 pieces of mining equipment from garages and office premises in Krasnoyarsk and Berezovsky district. It was sent for sale to Irkutsk. From one of the food bases near Krasnoyarsk, an attacker as part of an organized group stole mining equipment in the amount of 7.7 million rubles.

In Krasnoyarsk, a court sentenced a local resident accused of stealing mining equipment

It is clarified that in total, the defendant, as part of an organized criminal group, stole mining equipment totaling more than 10 million rubles. The man had to deliver accomplices to the crime scene, open the premises with equipment, and also ensure the rapid abandonment of the crime scene.

The stolen equipment for mining cryptocurrency with the help of a transport company was sent to Irkutsk for sale. The proceeds from this were divided by the head of the group between the accomplices in equal shares, as well as based on the role of each in the commission of a specific crime.

The police detained the members of the group and established its involvement in the theft of other property with a total value of over 900 thousand rubles. During the investigation, the stolen goods were seized, and the damage was compensated for 10 million rubles.

The defendant was charged with paragraphs "a," "b" part 4 of Art. 158 of the Criminal Code of the Russian Federation (theft). The Central District Court of Krasnoyarsk sentenced him to five years in a general regime colony, the press service of the regional prosecutor's office reports. Criminal cases against the organizer and another accomplice are in court proceedings.

In turn, the press service of the main department MINISTRY OF INTERNAL AFFAIRS for the region reports that a man who reported the disappearance of 14 pieces of mining equipment cryptocurrencies estimated the stolen at 14.5 million rubles.^[8]

2 illegal mining farms found in the attic of a mental hospital in the Irkutsk region

Law enforcement agencies found an illegal mining farm in the attic of one of the buildings of psychiatric hospital No. 2 of the Irkutsk region. The prosecutor's office seized equipment in the amount of 13 pieces of ASIC miners, according to the initiated case under Art. 165 of the Criminal Code of the Russian Federation (causing property damage by abuse of trust). This was announced on February 3, 2023 by the press service of the prosecutor's office of the Irkutsk region. Read more here.

Sysadmin "Cryogenmasha" received a suspended sentence for mining cryptocurrency on work servers

At the end of January 2023, the former system administrator of Cryogenmash, Vladimir Garipov, received a suspended sentence for mining cryptocurrency on work servers. Read more here.

2022

Irkutsk miners will be taken out of the shadows

In the Irkutsk region, due to underground cryptocurrencies, it is possible to switch to differentiated electricity tariffs. The region has a cross-subsidization system. This became known on December 13, 2022. For the population, the tariff is set at the lowest level, and the difference is paid by business, including a large one. And the work of illegal miners for business is extremely unprofitable. In the region, it is proposed to introduce a monthly electricity consumption rate for residents. If it is exceeded, the cost of each kilowatt will also grow.

On the territory of the Irkutsk region there are three large hydroelectric power plants at once - Irkutsk, Bratsk and Ust-Ilimskaya. Historically, in the region, the cost of electricity for the population is one of the lowest in the country. As of December 2022, this is 1.3 rubles per kilowatt. In the neighboring Krasnoyarsk Territory, citizens pay from 2.28 to 3.66 rubles. In the Republic of Buryatia - about 4.5 rubles. Therefore, the subject has been a Russian mining center for several years. The situation was further aggravated by the ban on the extraction of cryptocurrency in China. Many miners based there moved across the border to the nearest region - the Irkutsk region.

For example, cryptomainer from the Irkutsk region Sergey Yakovlev lost three courts with Irkutskenergosbyt. He tried to challenge the decision to recover 28 million rubles from him. Yakovlev arranged a mining farm for 630 kW in his summer cottage and consumed 75% of all electricity in the village. The court decided that the cost of electricity should be recalculated at a commercial rate - 4-5 times more. The defendant himself states that all electricity was used to heat the water in the two pools.

Most of the farms are in Irkutsk, Bratsk and Ust-Ilimsk, but there are many of them in rural areas. The people call such points "bobryatniki." The cost of the equipment is quite high, but if you place it somewhere in a secluded place like a garage or basement, it will bring the owner tens and hundreds of thousands of rubles a month with the most modest amount of equipment. At the same time, the power system of the Baikal region receives huge damage. Experts have calculated that Irkutsk miners for December 2022 consume the volume of generation of an entire hydroelectric power station. Read more here.

In Russia, opened a hunt for illegal miners in residential buildings

In Russia, they began to identify illegal miners who began to be held accountable for the extraction of cryptocurrency in residential buildings at preferential tariffs for the population. This became known on December 12, 2022, according to the deputy head of the Ministry of Energy Pavel Snikkars.

According to the official, attackers are identified by an increase in the volume of energy consumption in the house and a change in the load profile. Suspicions can be raised by a situation in which the tenant, for example, consumes more than 30-40% of the consumption of an apartment building, as well as due to a sharp increase in electricity consumption. In this case, an inspector is sent to the apartment for inspection.

After that, the owner of the mining equipment is either issued a new bill at the price of electricity for business, or they go to court, Snikkars said.

It is known about at least 10 cases of successful collection of funds from miners who decided to make money "at home"^[9].

Illegal mining farms were covered in Dagestan. Equipment for 0.5 billion rubles was seized there

In January 2022, illegal mining farms were discovered in Dagestan. Law enforcement officers seized computer equipment worth more than 500 million rubles there.

According to Kommersant, employees of the FSB of Russia in Dagestan stopped the illegal work of crypto farms in Makhachkala, Kizlyar and Kizilyurt district of the republic. The source of the publication in law enforcement agencies said that the seized equipment in the amount of 4343 units was sealed in 13 wagons until a procedural decision was made.

According to experts, crypto farms disconnected after searches previously consumed about 8 MW • h at a cost of 1.98 thousand rubles per 1 MW • h. In the branch of PJSC "Rosseti North Caucasus" - "Dagenergo" began an analysis of the amount of material damage by illegally connected cryptopherms.

Crypto farms operating in violation of the law lead to a critical increase in the load on the electric grid economy of Dagestan and cause frequent emergency power outages of the population, the FSB Department for the Republic of Dagestan reported.

In January 2022, illegal mining farms were discovered in Dagestan

Mining "farms" seized and disconnected from electricity. By January 202, 2022, work is underway in the area to replace substations. Because of this, temporary shutdowns are possible, warned in the administration of the Levashinsky district.

Dagestan, according to information published in December 2021 by Dagenergo, took first place in the North Caucasus in terms of the number of identified mining farms, and the volume of theft in the first 10 months of 2021 (more than 41 million kilowatt-hours) is comparable to the capacity of the Gunib hydroelectric power station (57.6 million kilowatt-hours). The head of the republic, Sergei Melikov, demanded to deal with cases of theft of electricity against the background of regular blackouts in the settlements of Dagestan. In addition to mining, power outages in the region are associated with worn-out power grids.^[10]

2021

A case of illegal mining at work was opened against the rector of Smolensk State University

As it became known in December 2021, a criminal case was opened against the rector of the Smolensk State University of Sports Georgy Grets on illegal cryptocurrency mining at the workplace. Read more here.

Due to illegal mining of cryptocurrencies, energy consumption in the regions of the Russian Federation soared 2.5 times

Due to hidden mining cryptocurrencies energy consumption in some regions Russia in 2021 soared 2.5 times. This was stated by the general director of the company (Bitriver the largest mining operator data centers in Russia). Igor Runets

According to him, regions suffering from home miners are already subject to frequent emergency power outages due to overloading of power grids. This problem is especially acute in the winter, when there is an increase in energy consumption by individuals, he added in a conversation with Izvestia.

Due to cryptocurrency mining, energy consumption in the regions of the Russian Federation increased 2.5 times

Market participants interviewed by the publication mean hidden mining, when shadow miners cryptocurrencies install energy-intensive equipment in residential buildings and do not register business. By December 2021, about 100 thousand people are engaged in such activities in Russia, a source familiar with the situation told the publication.

Due to the rapid growth of such production of cryptocurrency, which creates an excess load on the country's energy system, in the coming years, Russians may face massive interruptions in the supply of electricity, Mikhail Hardikov believes.

Alexander Brazhnikov, executive director of the Russian Association of Crypto-Economics, Artificial Intelligence and Blockchain (RAKIB), noted that cryptocurrency mining machines operate around the clock without interruption, and there may come a moment when electricity will not be enough for other home owners, he added.

The Ministry of Energy confirmed to the newspaper that with such an illegal connection, overloads in the power grids, accidents, and threats to the power system may occur.

The Association of Guaranteeing Suppliers and Energy Sales Companies considers it expedient to introduce differentiated tariffs for the population, increasing fees with higher consumption. Then cryptocurrency miners will pay a fair price for electricity, they noted there.^[11]

A policeman from Saratov mined cryptocurrency in the building of the Ministry of Internal Affairs

In Saratov, a criminal case was opened against a policeman who mined cryptocurrency at the workplace. He is charged with violations provided for in Part 1 of Art. 286 of the Criminal Code of the Russian Federation (abuse of office).

According to the Investigation Department, from December last year to July 2021, a traffic police officer, "having access to a temporarily unused room" in the building of the Saratov MREO traffic police on the 6th Sokolovogorsky passage of Saratov, installed two cryptocurrency mining stations there.

According to the Telegram channel Baza, the police captain mined cryptocurrency by installing equipment in the technical room of the traffic police department. He was caught after the traffic police department received an electricity bill, which contained a large amount. The damage caused by his illegal actions, consisting in overpayment for electricity, amounted to 231,000 rubles, the Investigative Committee specified.

In Saratov, a criminal case was opened against a policeman who mined cryptocurrency in the building of the Ministry of Internal Affairs

During the search, two miners, a WiFi router and three power supplies were found in one of the premises. It is noted that the inspector did not have time to earn cryptocurrency.

By the beginning of October 2021, investigative actions and "consolidation of evidence" are being carried out in the case. The maximum punishment that a policeman faces is four years in prison.

The Main Directorate of the Ministry of Internal Affairs notes that if the guilt of the policeman is proven, he will be dismissed from the internal affairs bodies on negative grounds and brought to justice.

In July 2021, the same case was brought against Kazan metro employees, who managed to spend 352 thousand rubles of electricity in two months. In August 2021, officials in Kamchatka mined cryptocurrency on office computers. The case materials were transferred to the FSB. The local government then stated that this could jeopardize the security of the information and communication network of the government of the Kamchatka Territory.^[12]

A criminal case has been opened against employees of the Kazan metro for cryptodobychy at the workplace

On July 22, 2021, information appeared that a criminal case was initiated by the Investigative Directorate of the Investigative Committee of Tatarstan under Art. Art. 285 of the Criminal Code of the Russian Federation ("Abuse of office"). The defendants in the case were the 40-year-old chief engineer of the Metroelektrotrans municipal unitary enterprise in Kazan and the 32-year-old director of the ground transport energy management service, the press service of the law enforcement agency said. Both employees of the transport enterprise were engaged in mining cryptocurrency at the transformer substation of the metro. Read more here.

Confiscation of 45 thousand devices for mining bitcoin in Iran

In mid-January 2021, Iranian police confiscated approximately 45 thousand. ASIC miners for illegally consuming subsidized electricity in the country.

Mohammad Hassan Motavalizadeh, head of the Iranian state-owned power company Tavanir, said that miners, mainly using ASIC devices, consumed 95 MW-h of electricity at a very low price. He noted that another 45 MWh of electricity was saved by making changes to street lighting systems in Tehran and other cities.

The overall decrease in consumption corresponds to the consumption of electricity in a city with a population of more than half a million people, Motavalizade said.

Iran confiscated 45 thousand devices for mining cryptocurrency illegally connected to the state electric network

Iran has initiated new measures to crack down on illegal cryptocurrency mining after a recent decision to temporarily shut down authorized mining farms to prevent power outages in major cities. Videos circulated on social networks in early January 2021 featured a mining farm in southeastern Iran, where tens of thousands of ASIC miners functioned. The Ministry of Energy has suspended the supply of electricity to a farm owned by a Sino-Iranian investment company.

Iranian authorities said other authorized mining farms with a total consumption of 600 MWh were shut down to help the energy company cope with rising demand for electricity during the peak of consumption, which is exacerbated by pandemic-related rgovernment orders to restrict the movement of citizens.

According to The Washington Post, Zia Sadr, a cryptocurrency researcher from Tehran, denied the statements of the Iranian authorities. He argues that miners "have nothing to do with blackouts," as mining accounts for only a very small percentage of the country's total electric capacity. In his opinion, the problem lies in the worn-out equipment of power plants.^[13]

In Kalmykia, a criminal case was opened on the theft of electricity for 16 million rubles when mining bitcoins

As it became known on January 12, 2021, a criminal case was opened in Kalmykia for the theft of electricity for 16 million rubles under. mining bitcoins More. here

2020

Rosseti estimated the amount of loss from the activities of "black" miners

On December 22, 2020, Rosseti reported the size of the loss from the activities of "black" miners - people who mine cryptocurrency by illegally connecting to other people's energy systems and, accordingly, paying for electricity. Read more here.

Crypto farm caused a fire in a St. Petersburg communal apartment

St. Petersburg An illegal farm located in one of the communal apartments cryptocurrency mining for caused a fire in the Petrograd district of the city. This became known on November 25, 2020. As it turned out, the owner of the crypto farm did not take care of the cooling system.

On November 24, 2020, at 22:13, the Ministry of Emergency Situations in the city of St. Petersburg received a message about a fire in a seven-room communal apartment at house number 36 on the Karpovka River embankment. To combat the fire, four pieces of equipment and sixteen firefighters arrived, who managed to extinguish the fire after 40 minutes.

The owner of the crypto farm himself, a 35-year-old man hospitalized with burns to his hands, back and neck, was also injured in the fire.

The other day, a mining farm cryptocurrencies was also discovered in the city of Dagestan Lights (Republic). Dagestan The illegal enterprise was equipped in a rented apartment owned by a pensioner. The identity of the organizer of the crypto farm is established. The damage from the activities of the illegal enterprise amounted to more than 4 million rubles^[14]

Rosseti lost 600 million rubles in 4 years due to gray miners

From 2017 to October 2020, Rosseti lost about 600 million rubles due to the activities of illegal miners. The company announced this on its Telegram channel on October 23. Read more here.

Covered underground mining farm, because of which Rosseti lost 23 million rubles

On September 28, 2020, Rosseti reported the discovery of an underground mining farm, due to which the company lost almost 23 million rubles. Such crimes are becoming more and more due to the growth of bitcoin and other cryptocurrencies. Read more here.

Damage of 2 million rubles from underground miners

On August 12, 2020, Rosseti North Caucasus announced the identification of several farms illegally connected to power grids for the extraction of cryptocurrencies in Dagestan. Losses from illegal activities of miners are estimated at almost 2 million rubles. Read more here.

Abkhazia has become a "center of illegal mining"

In the first half of 2020, 83 batches of equipment for the extraction of cryptocurrencies were imported into Abkhazia. The customs committee issued 10 batches in the amount of 42 million rubles at the Psou checkpoint in temporary import mode, 73 batches for the same 42 million rubles were imported as imports. In 2019, customs issued the import of 23 batches of equipment for the extraction of cryptocurrencies for a total of 37.4 million rubles.

According to Nuzhnaya Gazeta, Abkhazia has become the center of illegal mining. In this region, it is forbidden to mine cryptocurrency since the end of December 2018. As the chairman of the customs committee Guram Inapshba noted, the legislation of Abkhazia does not prohibit the import of cryptographic equipment into the country.

It turns out that we launch them, and then we start looking for them, - said the head of the customs committee.

In his opinion, it is quite simple to resolve the issue - it is necessary to prohibit the import of this equipment, and "not a single container will pass into Abkhazia."

He also drew attention to the fact that the customs data is incomplete, since some of the equipment is smuggled in. In February 2020 alone, customs officers stopped the illegal import of 38 mining installations.

According to the head of customs, when importing such equipment, it is difficult to establish whether the equipment is household, office or intended for profit.

Several dozen citizens of our country are engaged in the import of cryptographic equipment into Abkhazia, whose names are not subject to disclosure in accordance with the law on commercial secrets. There are no foreigners among them, added Guram Inapshba.

Earlier, the authorities of Abkhazia made attempts to ensure the regulation of the cryptocurrency mining sphere. The Ministry of Economy has developed a corresponding bill in which registration as a legal entity or individual entrepreneur, registration with the tax authorities as a taxpayer and obtaining a license to carry out cryptocurrency mining activities were mandatory conditions for this activity. However, this bill was not adopted by parliament.^[15]  

In the Pskov region, underground miners stole electricity worth 1.25 million rubles

On June 23, 2020, it became known about a large theft of electricity in the village of Kunya in the Pskov region, where a large mining farm was deployed.

As the press service of the Pskov branch of Rosseti North-West told Moskovsky Komsomolets in Pskov, the mining farm was hidden in a local hangar. The police examined it together with power engineers. During the check, it was found that the attackers damaged the anti-magnetic seal, installed a magnet on the meter and used electricity without regard. Computer equipment for mining cryptocurrency was connected to the networks.

Cryptocurrencies have placed a production base in one of the old hangars. They stole electricity for their own purposes by connecting to the Pskov power grids

The police will investigate the case. Suspects face up to 5 years in prison for embezzlement of energy on an especially large scale. The exact damage of the scammers has yet to be assessed. According to preliminary data, the criminals stole electricity worth about 1.25  million rubles.

The Rosseti North-West company asks to report all the facts of illegal connection to power grids and theft of electricity to a single free hotline phone^[16]

This is far from the first time clandestine miners have been exposed and have caused damage to the company. Specialists of Rosseti Lenenergo (legal name - PJSC Lenenergo) discovered a mining farm on the territory of gardening in the Gatchina district of the Leningrad region.

In the course of control measurements of energy consumption, it was revealed that the metering device reduces consumption indicators by 10 times. As a result of the check, together with law enforcement agencies, in the container-type premises, cryptocurrency mining equipment was found that consumes electricity without regard. According to preliminary calculation, the cost of unaccounted electricity consumption amounted to 5.6 million rubles, it will be collected from the owner of the equipment. The mining units themselves and the faulty metering device were dismantled.

A mining farm that stole electricity for 34 million rubles was closed in Dagestan

On June 6, 2020, the Ministry of Internal Affairs for the Republic of Dagestan announced the discovery of a mining farm that was illegally connected to electric networks, causing damage to the network company in the amount of more than 34 million rubles.

It was established that in May of this year, a 30-year-old man rented a non-residential premises on the third floor of an existing construction base in the suburban village of Novy Khushet, where he organized a mining farm to produce lightcoins and bitcoins, the ministry said in a statement.

Rosseti North Caucasus caught a miner from Dagestan in the theft of electricity in the amount of over 34 million rubles

Create farms illegally connected to the power line passing along the construction base, and led the wires to specialized equipment. The violator did not conclude an energy supply agreement with the guaranteeing supplier of electricity (PJSC Dagestan Energy Sales Company, managed by Rosseti North Caucasus), as well as an agreement on technological connection to the networks of the Dagestan Grid Company. 

The police found components from computers and 518 devices for generating digital currency in the room. Power engineers drew up an act on non-contractual electricity consumption.

A criminal case was initiated under paragraph "b" of Part 2 of Art. 165 ("Causing property damage by deception or abuse of trust") of the Criminal Code of the Russian Federation.

The amount of theft of electricity in Novy Khushet - 34 million rubles - has recently become the largest discovered by Rosseti employees, the Rosseti North Caucasus holding said in a statement dated June 8, 2020.

By this date, PJSC Rosseti North Caucasus provides power transmission through networks with a voltage of 0.4 kV to 110 kV, and also carries out technological connection of consumers to the network infrastructure in the North Caucasus Federal District.^[17]

At the exchange rate as of June 8, 2020, one lightcoin costs 3172 rubles, and bitcoin - 663,706 rubles.

Underground mining caused Rosseti damage of 450 million rubles in 3 years

Underground mining caused Rossetyam damage of 450 million rubles in three years. The company announced this at the end of May 2020 on its Telegram channel.

For a 3-year period of time, Rosseti in 20 regions of Russia revealed 35 cases of theft of electricity in order to supply mining farms. For all these episodes, law enforcement agencies were involved to punish those involved in underground mining.

Rosseti assessed the damage from theft by cryptocurrency miners

It is since 2017 that we have been recording attempts by unscrupulous businessmen to reduce their costs and increase profits by stealing electricity for the purpose of mining cryptocurrencies... the main costs of mining cryptocurrencies, in addition to the equipment itself, are electricity costs, the company said in a statement.

It is also noted that since the period of growth of the cryptocurrency exchange rate, Rosseti has recorded "attempts by unscrupulous businessmen to reduce their costs and increase profits by stealing electricity."

Thus, illegal mining farms were discovered in Kalmykia. The devices caused damage to the energy supply company over 1 million rubles, a criminal case was opened against the two suspects. The article implies imprisonment for up to five years with the payment of a fine.

Also in February, a farm worth 1.2 million rubles was closed in Chechnya for the extraction of cryptocurrency, illegally connected to the power grid. The equipment was found after complaints from local residents who experienced electrical problems.

Despite the increasing number of cases of underground mining, Rosseti said it would not increase electricity tariffs for users who increase the load on networks at night and are allegedly engaged in cryptocurrency mining.

The head of the Russian Post branch mined cryptocurrency at the workplace

At the end of May 2020, the head of the Russian Post branch in the Stavropol Territory mined cryptocurrency at the workplace, as a result of which a criminal case was opened against him. This was reported by the press service of the regional department of the Investigative Committee of Russia (TFR).

According to the investigation, the ex-head of the mineralovodsk branch of the Russian Post since September 2019 installed and illegally connected computer equipment for mining cryptocurrency to the post office. For six months he used this equipment,  and the electricity bills of the  Internet were paid by Russian Post.

In the Stavropol Territory, a mailer mined cryptocurrency at the expense of the company

As a result of the "illegal actions" of the suspect, the Office of the Federal Postal Service of the Stavropol Territory caused damage to over 30 thousand rubles. As specified in the Investigative Directorate of the Investigative Committee of the Russian Federation for the Stavropol Territory, this criminal case was initiated based on the materials of the FSB of Russia for the Stavropol Territory and the regional Department of the Ministry of Internal Affairs.

By the end of May 2020, the TFR is conducting investigative actions aimed at collecting the necessary evidence base. He is suspected of abuse of office (part 1 of article 285 of the Criminal Code of the Russian Federation). When it became known about the illegal actions of the head of the post office, he was fired.

There are more and more cases of abuse of their official positions for the purpose of cryptocurrency mining in Russia. According to Andrei Yankin, Deputy Director of the Information Security Center of Jet Infosystems, the greatest risk of staff abuse in companies with large computing power and poorly controlling them. More vulnerable are the public sector, government and near-state companies that have rich data centers (data centers) with thousands of servers and incompetent administrators.^[18]

A crypto farm was found at a poultry farm in the Novgorod region

On April 30, 2020, it became known that in the village of Podberezye, Novgorod District, a farm for mining cryptocurrency was equipped at an inoperative poultry farm. Employees of the Rosseti North-West company discovered an illegal enterprise during the inspection of electricity metering devices. The reason for the check was a sharp increase in energy consumption by the poultry farm, which has been at the stage of bankruptcy for a year and a half and has officially ceased operations.

When the specialists of the Rosseti North-West company came with a check, the security guards of the enterprise, under various pretexts, tried to prevent them from reaching the electric meters. Ultimately, the controllers managed to check the metering devices, and, as it turned out, of the nine electric meters registered at the enterprise, two were disabled, and the rest showed signs of internal interference and forgery of seals.

During the audit, experts also found cables laid on the ground from transformer substations to containers that housed cryptocurrency mining devices.

As a result of the activities of the North-West crypto farm Rosseti , damage was caused in the amount of 118 million. rubles^[19]

Lviv railway worker illegally mined cryptocurrency at the workplace

In Lviv (Ukraine), a court will be held against an employee of the state railway company "Ukrzalіznitsya," who is accused of illegal mining of cryptocurrency at the workplace. This became known on March 10, 2020. According to media reports, the official installed special equipment in his office and workshop and arbitrarily connected it to the power grid. Due to the theft of electricity, the man mined cryptocurrency.

In November last year, a mining farm illegally connected to the power grids of the enterprise was discovered in the Lviv branch of Ukrzalіznitsya. As established by law enforcement officers, the head of one of the divisions of the Lviv branch of the Ukrzalіznitsya company was involved in the illegal actions.

The official was engaged in illegal activities for five months and caused damage to the enterprise in the amount of about 400 thousand hryvnia (more than 1 million rubles). The theft of electricity was documented by law enforcement officials.

The actions of the official were qualified under Part 2 of Article 188-1 ("Theft of water, electric or thermal energy by unauthorized use") of the Criminal Code of Ukraine. The case was sent to the court for consideration on the merits. The former employee of the company "Ukrzalіznitsya" faces punishment in the form of imprisonment for up to three years.^[20]

2019

Attackers stole 32 thousand kVt⋅ch in the amount of 81 thousand rubles from Ingushenergo

On December 30, 2019, it became known that the owners of a recently closed illegal crypto farm in Ingushetia again stole electricity from Ingushenergo (a branch of Rosseti North Caucasus). This time, the attackers stole 32 thousand kVt⋅ch in the amount of 81 thousand rubles.

In October 2019, during a planned audit in the city of Sunzha, specialists from the technical audit unit recorded a throw onto a power line bypassing the electric meter. During the inspection of the problem area, illegally connected equipment for mining was found. cryptocurrencies Then the attackers stole more than 160 thousand kVt⋅ch of electricity from Ingushenergo in the amount of about 400 thousand rubles, which is equal to the energy consumption of the Dzheyrakhsky district of Ingushetia for two weeks or the monthly consumption of the Ingush Republican Clinical Hospital.

An act on unaccounted electricity consumption was drawn up against the owners of the crypto farm, but after a while they again illegally connected mining equipment to the power grids. A repeated unauthorized raid on the power line was discovered by Ingushenergo employees during a raid to collect debts for consumed resources at the end of this month. Information about the fact of theft was transferred to the law enforcement agencies of the republic.

The offender must pay a bill significantly higher than the cost of electricity obtained legally. The amount of compensation is calculated based on the maximum possible consumption of connected equipment around the clock since the last check^[21] of^[22].

In Krasnoyarsk, the head of the HOA "Neighbors" started a crypto farm in the basement and transferred millions of debts to residents

On November 1, 2019, it became known that in Krasnoyarsk, in the basement of a house on the street. Molokova, 15, a cryptocurrency mining farm illegally connected to the general house power grid was discovered. As a result, the general house meter recorded "excess" electricity totaling 4.5 million rubles. Read more here.

An employee of the nuclear center in Sarov received a suspended sentence for mining cryptocurrency at the workplace

On October 16, the Sarov City Court sentenced to a suspended sentence and a fine of an employee All-Russian Research Institute of Experimental Physics (RFNC-VNIIEF), the Andrey Shatokhin press service of the court told TAdviser. In 2018, he and two colleagues were detained for attempting to mine in the bitcoins workplace.

According to information on the court's website, Shatokhin was charged with four crimes under three articles of the Criminal Code of the Russian Federation: illegal access to computer information using his official position (Article 272), violation of the rules for storing computer information (Article 274), use and distribution of computer viruses (Article 273).

The press service of the Sarov City Court told TAdviser that together for the three alleged crimes, Andrei Shatokhin was sentenced to 4 years in prison conditionally with a probationary period, and for one crime - a fine of 250 thousand rubles. The verdict has not yet entered into legal force.

Dagestan miner stole electricity for 4.4 million rubles

Employees of the Rosseti North Caucasus company discovered an underground mining farm in Buinaksk, the owner of which stole electricity worth about 4.4 million rubles, the press service of the company^[23].

Equipment for the extraction of cryptocurrency was illegally connected to the power grids of the Dagestan Grid Company JSC managed by Rosseti North Caucasus. An act of non-contractual electricity consumption was drawn up for the owner of the facility, and all information about the fact of theft of the energy resource was transferred to the law enforcement agencies of the republic.

In addition to compensation for damage, the owner of the farm will incur administrative punishment, and he may also face criminal liability. The press service recalled that the fine for illegal use of electricity is 10 thousand - 15 thousand rubles for individuals, 100 thousand - 200 thousand rubles for legal entities and 30 thousand - 80 thousand rubles (or disqualification for a period of 1 year to 2 years) - for officials.

Large-scale crypto farm liquidated in Ingushetia

Not far from the village of Plievo in the Nazranovsky district of the Republic of Ingushetia, a huge cryptocurrency farm was discovered. More than one and a half thousand video cards were located in a building on which two transformers with a capacity of 1600 kW were illegally installed each^[24] was^[25].

The owner of the crypto farm did not pay for electricity, and the security of the electricity supplier drew attention to this. According to^[26] from the Rosseti North Caucasus energy company, this case is the largest theft in recent years - electricity worth 130 million rubles was stolen.

During the search of the crypto farm, law enforcement officers identified 1,651 video cards, two system units, a laptop, a video surveillance system DVR and two transformer stations. All of the above equipment was confiscated. From records from video cameras, law enforcement officers hope to calculate the owner of the farm.

The issue of initiating a criminal case under Art. 165 of the Criminal Code of the Russian Federation ("Causing property damage by deception or abuse of trust on an especially large scale"). This article provides for punishment in the form of a fine and imprisonment for up to five years.

Miner from Ingushetia stole electricity for 130 million rubles

On September 4, 2019, Rosseti North Caucasus announced the identification of the theft of electricity used for the extraction of cryptocurrencies. The amount of damage exceeded 130 million rubles, according to the company's website.

Employees of the Rosseti North Caucasus security unit found an object near the village of Plievo in the Nazranovsky district of Ingushetia, where transformers were installed without technical permits. The installations were used to illegally supply power to a nearby building, in which there were over 1.6 thousand mining devices. cryptocurrencies

Rosseti North Caucasus announced the identification of the fact of theft of electricity

The company transferred all information to law enforcement agencies, and now the offender faces imprisonment for a period of two to five years.

Alim Kokov, Deputy General Director for Security of Rosseti North Caucasus, says that this is the most resonant of all cases of mining theft that have been identified by the company's specialists since the beginning of 2019.

Earlier, with the assistance of law enforcement agencies, for a short time, a security block of an energy company in Dagestan disclosed similar facts of theft of an energy resource by miners.

Work in this direction will continue, since the theft of cryptocurrencies causes significant damage not only to power engineers. This is a significant damage to the economy of the regions in whose territory they develop their illegal activities, - said Kokov.

The Rosseti of the North Caucasus said that the amount of damage corresponds to about one third of the annual budget of the Nazran region, on the territory of which the fact of theft was revealed.

In April 2019, Deputy Prime Minister Vitaly Mutko said that the total debt of all electricity and gas consumers in the North Caucasus Federal District reached 120 billion rubles.^[27]

Employees of the South Ukrainian NPP mined cryptocurrency at the workplace

Officials of the South Ukrainian Nuclear Power Plant illegally mined cryptocurrency in the workplace. As reported in the court materials, in order to extract cryptocurrency in the secure premises of the nuclear power plant, computer equipment with an Internet connection was unauthorized. As a result of these actions, information about physical protection, which is a state secret, was disclosed^[28].

As a result of a search conducted in the office of spare parts and equipment in the administrative building of the nuclear power plant, as well as in the military unit located on the territory of the nuclear power plant, law enforcement officers seized computer equipment. In particular, video cards, hard drives, system units, power supplies, the CTC union media converter, fiber and network cables and other components were seized. The seized equipment was seized in order to prevent its damage or destruction.

In Krasnoyarsk, public utilities discovered a cryptomining farm

Employees of the economic security service of the KrasCom company discovered the illegal connection of a mining farm to municipal power grids for the extraction of bitcoin cryptocurrency. It is assumed that the attackers connected to the electric networks in the spring of 2019^[29][30].

Law enforcement officers documented the fact of criminal activity and seized on the spot more than a hundred pieces of equipment for the extraction of cryptocurrency, worth over 10 million rubles. The criminals' equipment consumed about 400 kV/h for two months. The KrasCom company estimated the damage caused to it at more than 2 million rubles.

The attackers are accused of a crime under Part 2 of Art. 165 of the Criminal Code of the Russian Federation (causing property damage by deception or abuse of trust), for which they face up to five years in prison.

2018

Hidden cryptocurrency mining in the AvtoVAZ workshop

On October 15, 2018, it became known that the Security Service Officers AvtoVAZ"" found Tolyatti equipment for in one of the company's workshops, hidden prey cryptocurrencies according to the TLT Pravda edition. The farm was hidden in the electrical cabinets of the 19th Conveyor Control Room. More. here

An underground crypto farm of 6 thousand devices worked at the Orenburg abandoned plant

Law enforcement officers of Orenburg stopped the activities of a large farm for mining cryptocurrency, which illegally worked on the territory of one of the former factories^[31].

According to a report on the official website of the Ministry of Internal Affairs^[32] of the Ministry of ^[33], employees of the energy company turned to the police, who discovered a large-scale leakage of electricity in one of the former factories. The investigative-operational group of the Russian MIA Administration for the Orenburg Region, together with the OMON and the Russian Guard, cordoned off the territory and identified over 6 thousand devices connected to the power grid and power cables leading to the nearest substation.

According to the official representative of the Ministry of Internal Affairs Irina Volk, according to preliminary data, the aforementioned equipment was used to extract cryptocurrency. "It has been preliminarily established that high-tech equipment was used to produce cryptocurrency. The work of this enterprise was carried out without taking into account the consumption of electricity in excess of 8 million kVt·ch, "the Ministry of Internal Affairs explained.

Law enforcement officers managed to identify the two founders of the enterprise. A criminal case was initiated against them on the grounds of a crime under Part 2 of Article 165 of the Criminal Code of the Russian Federation ("Causing property damage by deception or abuse of trust").

2017

FSB arrested Vnukovo Airport Sysadmin for cryptocurrency mining

Employees of the Federal Security Service in December 2017 searched the Moscow Air Traffic Control Center at Vnukovo Airport. The reason for this was the appeal of the heads of the center to law enforcement agencies with a complaint about constant voltage surges.

During the search, FSB officers found out that their reason was the creation by one of the system administrators of a farm for mining cryptocurrency, which was connected to the airport's electrical network. An airport employee was detained by the FSB, the investigation is ongoing, the Mash telegram channel reported, citing its own sources.

Also in December 2017, attempts to mine cryptocurrency in Transneft"" were announced by the ex-Minister of the Interior, Vice President of this company Vladimir Rushailo. Speaking at the company's expert board on, cyber security he observed that this could interfere with the company's technology processes.

Bitcoin mining by employees of the Crimean government

Two employees of the Council of Ministers of Crimea paid with their posts for installing software for mining bitcoins on the government server. This was announced at a press conference in Sevastopol in September 2017 by the head of the anti-corruption committee of Crimea, Alexander Akshatin^[34].

The head of the committee explained that we are talking about two specialists who worked in the IT division. According to Akshatin, they also put malicious software on the Crimean government server, which opened access to the information stored on it. In parallel, more than a dozen computers were launched in the basement of the building, which gave this access.

The head of the committee noted that the attackers managed to earn a little. "I can't say for sure, but less than one bitcoin. Then [in February - March 2017] bitcoin was $1800, now it costs $4000. If even half a bitcoin is some kind of money, "Akshatin said, stressing that the dismissed did not have time to cash out the cryptocurrency.

Bitcoin mining on the working server of the US Federal Reserve

An employee United States Federal Reserve with a monopoly on output dollar was fined for using a working server for mining. bitcoins Nicholas Berthaume, who worked as a communications analyst at the reserve board of directors, used his access to a federal computer to install an illegal production program on it cryptocurrencies^[35]

Remaining unnoticed, the program worked for almost two years: from March 2012 to June 2014. At the same time, it used the computing power of the reserve server to conduct, verify and record operations with bitcoins. According to the rules of operation of this software, the more computing power the user attracts, the more reward he receives. For his actions, Bertome was fined $5,000, and also received 12 months of administrative supervision. How many bitcoins he managed to get during the work of the software is unknown.

In addition, the Inspector General's Office, USA which is investigating the case, alleges that Bertome modified protection on servers reserves to remotely manage the program's operation from home. Hearing the accusations against him, Bertome at first denied the fact of bitcoin mining, but some time later he tried to remotely remove the software from the server and cover up the traces of its presence. When this was proven, the attacker confessed to his actions and began to cooperate with the investigation. Despite the changes in protection, there was no leak of information from the backup server.

Notes