Illegal Crypto Hosting Case Reaches Court in Irkutsk Region

Two individuals face trial in Irkutsk for organizing an illegal crypto hosting site with 170 miners. The mining farm allegedly caused over $450,000 in damage to the local power grid.

Court to Hear Case on Shadow Mining Operation

Russia’s Investigative Committee has completed an investigation into an illegal crypto hosting case in the Irkutsk region. The case involves two individuals — a local entrepreneur and a chief power grid engineer — accused of organizing a mining operation in the village of Molodezhnoe.

From 2021 to 2024, they rented out premises for mining purposes, installing 170 mining devices. The farm was connected to electricity networks meant for residential use. Tenants were charged commercial rates, but the actual electricity was billed at subsidized household prices.

Energy Provider Suffered Losses of 40 Million Rubles

Authorities claim the unauthorized use of the grid caused 40 million rubles in losses (over $450,000). The suspects are charged with large-scale property damage through deception (Article 165, Part 2 of the Russian Criminal Code).

One defendant previously chaired the local housing association, while the second worked as a senior engineer at a utility company. The investigation found that they conspired to use residential infrastructure for crypto mining.

Both men were detained in late April. The case has now been submitted to Irkutsk District Court. It highlights the growing scrutiny of illegal mining activity in residential areas, where electricity is cheaper and harder to monitor.