Russia Intensifies Crackdown on Illegal Mining with Bitcoin Confiscations
Trusted Editorial content, evaluated by top industry professionals and experienced editors. Ad Disclosure
A former electric grid executive in Russia has lost approximately ₽7 million (around $88,570) in Bitcoin after authorities seized his assets.
According to a press release from the Investigative Committee of the Amur Oblast, the individual—previously in charge of technological connection services at the Far Eastern Distribution Company—used his insider knowledge to illegally tap into the grid and operate mining rigs from his residence.
He apparently bypassed a metering device in 2024, stealing more than ₽3.5 million (around $44,334) worth of electricity to mine around 0.8414 BTC.
Authorities became aware of the operation when officers from Russia’s main federal investigative body, in collaboration with the Federal Security Service, raided his property and took control of his digital wallet.
Details Of The Raid
Investigators from the Amur branch of the Far Eastern Distribution Company reported tracking unusual power usage at the former executive’s home.
They indicated that he had established an illegal connection to his employer’s grid facilities and concealed the additional load from the meters. Upon the agents’ arrival, they discovered multiple mining rigs installed in his residence, which had already generated roughly 0.8414 BTC, valued at about ₽7 million at the time of confiscation.
BTC is currently trading at $105,798. Chart: TradingView
Electricity Theft And Mining
According to the findings, the man illegally accessed DRSC’s distribution network. He avoided standard billing by rerouting power lines and manipulating meters. This resulted in electricity theft that amounted to over ₽3.5 million.
With this illicit power, he managed to mine Bitcoin from what appeared to be a standard apartment. The press release highlighted that he utilized his position to approve fraudulent connections for others while skimming electricity for himself.
In addition to cryptocurrency mining, investigators found that he had accepted bribes from local business owners who sought expedited approval for power-related documents.
Crypto mining requires substantial energy and numerous specialized computers operating almost continuously. Image: Christinne Muschi/Alamy
Legal Hurdles And Changes
Mining or holding Bitcoin has been complex in Russia due to the lack of clear legal status for cryptocurrencies. Reports indicate that this case advanced because a draft law—publicized in April—seeks to allow law enforcement to classify crypto assets as intangible property in criminal cases.
If this bill is enacted, courts could more readily order the seizure of Bitcoin and other digital assets. Until then, law enforcement is utilizing existing anti-theft and anti-corruption laws to confiscate cryptocurrency, as evidenced by the seizure of $8.2 million worth of crypto from a Hydra darknet operator or the confiscation of 1,032 BTC (approximately $88.5 million at current rates) from a former SKR investigator convicted of bribery in Bitcoin.
Broader Crackdown In Russia
This arrest is part of a broader initiative by Russian authorities to combat illegal crypto activities. Over the past year, there has been a crackdown on darknet markets, insider traders operating through crypto transactions, and those illegally sourcing electricity for mining.
Reports suggest that federal agencies believe that stealing power from the grid has become a common method among local miners, especially in remote regions with less oversight.
Featured image from Getty Images, chart from TradingView
The editorial process at Bitcoinist focuses on providing well-researched, accurate, and impartial content. We maintain strict sourcing standards, and each article undergoes thorough review by our team of leading technology specialists and experienced editors. This process guarantees the integrity, relevance, and quality of our content for readers.
Source link
#Russias #War #Illegal #Mining #Heats #Bitcoin #Seizures
