Illegal Bitcoin Mining Hotel Shut Down in Krasnoyarsk

Authorities in Krasnoyarsk shut down an illegal Bitcoin mining hotel that caused power outages at a local clinic. The owner is being investigated for tax, land, and fire safety violations.

Underground crypto mining disrupts power supply

Prosecutors in Krasnoyarsk, Russia, announced the closure of a large-scale illegal mining hotel. The operator installed ASIC miners in several rented buildings and even added external power units with transformers, authorities reported.

The main issue was not electricity theft itself but the fact that the facility was connected to the same grid powering socially important sites. In January 2024, the excessive load already caused power outages at a local clinic, according to officials.

Prosecutors demand restrictions and launch probe

The prosecutor’s office ordered the regional power company to restrict electricity supply to the illegal mining facility. Meanwhile, the businessman behind the operation is under investigation for tax evasion, land violations, and breaches of fire safety regulations.

Experts warn that underground mining hotels pose significant risks:

• power outages affecting hospitals and social facilities;
• increased fire hazards due to overloaded networks;
• lost tax revenue and potential fines for organizers.

The Krasnoyarsk case highlights once again that illegal Bitcoin mining can endanger local infrastructure and residents’ safety.