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Crypto Miner Convicted in Russia for Allegedly Stealing Power to Mint Digital Coins – Mining Bitcoin News

The regional court sentenced to two years a man accused of illegally connecting his cryptopharme to the network. The decision comes at a time when Moscow authorities are preparing to address the lack of proper regulations for cryptocurrency mining, which has become a popular source of revenue in Russia.

The illegal cryptofarma will burn 1.3 million kWh in Komi, Russia

The city court in Syktyvkar, the capital of the Russian Republic, Komi, has found a 39-year-old local who operated an underground cryptopharme guilty of stealing electricity. The hardware was installed in a building leased from an industrial plant and illegally connected to a nearby substation.

The man operated the mining facility for at least five years and used 1.3 million kilowatt-hours of unpaid electricity to mint digital currencies, the regional prosecutor’s office said in a press release published on Tuesday. The stolen electricity is estimated at 5.7 million Russian rubles (almost $ 75,000 at the time of writing).

According to the announcement, the man, whose identity was not immediately revealed, received a two-year suspended sentence with a probationary period of two years, which he confessed to the court, for his mining activities between 2015 and 2020.

Without government-adopted rules, cryptocurrency mining is spreading across energy-rich Russia not only as a profitable business, but also as another source of income for many ordinary people. In some regions, local authorities have complained that the increase in mining in cellars and garages has caused damage to the electricity grid, which is trying to cope with the growing burden.

In the Irkutsk region, which has one of the lowest electricity rates in Russia, at $ 0.01 per kWh for households, the energy company has filed 85 lawsuits against domestic miners this year. A recent report revealed that the company had already won nine cases, which it expected to receive 18.7 million rubles ($ 250,000) in compensation.

There are growing calls among officials in Moscow and some regions to recognize and tax cryptocurrency mining as an economic activity. This would also give the authorities the opportunity to charge miners more for the energy they consume. The State Duma Task Force is currently preparing regulations for a number of cryptocurrency-related activities, including mining.

In December, the federal government allowed Russian regions to set local electricity rates in residential areas. This move is expected to affect amateur miners, who will pay more after reaching a certain consumption limit. Domestic mining has become so popular mainly due to the cheaper electricity offered to the population.

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Crypto, crypto farm, cryptocurrency mining, cryptocurrency mining, cryptocurrency, cryptocurrency, Electricity, Energy, Comi, Miner, mining, Mining farm, Power, Regulation, Regulations, Russia, Russian, sentence, Syktyvkar

Do you think that Russia will soon regulate cryptocurrency mining? Share your expectations in the comments section below.

Lubomír Tasev

Lubomir Tassev is a technologically savvy Eastern European journalist who likes Hitchens’ quote: “Being a writer is what I am, rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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