Kuznetsov Sergei

Biography

2025: Arrest in the case of illegal mining of cryptocurrencies for 1 billion rubles

In mid-September 2025, the Smolninsky District Court of the city of St. Petersburg issued a decree on the arrest of the head of St. Petersburg - the Finnish power supply distance of Russian Railways Sergei Kuznetsov. He is a defendant in the case of illegal cryptocurrency mining at Russian Railways facilities in the amount of about 1 billion rubles.

According to the investigation, Kuznetsov, his deputy Balzer and other persons agreed for monetary remuneration to provide access to the Russian Railways power system to the owner of mining equipment. The case file says that "under the general guidance of an unidentified person," cryptocurrency mining devices were placed on the territory of the Gromovo and Lugovaya traction substations.

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Фото: Vasily Shitov/Kommersant

It is emphasized that the leaders of St. Petersburg - the Finnish power supply distance of Russian Railways carried out actions "clearly beyond their powers." At the same time, they realized that "uncontrollably consumed electric energy for needs not related to the activities of Russian Railways will harm property rights and the legitimate interests of the enterprise."

According to estimates, illegally installed mining equipment consumed energy totaling 986.2 million rubles. These expenses were paid by the October Power Supply Directorate of the structural unit of the Central Power Supply Directorate - a branch of Russian Railways.

Kuznetsov was charged with committing crimes under paragraph d, e part 3 of article 286 of the Criminal Code of the Russian Federation - abuse of office. Such acts are punishable by imprisonment for a term of three to ten years with deprivation of the right to hold certain positions or engage in certain activities for up to three years. The court ruled to elect Kuznetsov a preventive measure in the form of detention.^[1]

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