Illegal Crypto Mining Farm Discovered in Karachay-Cherkessia

  • Sergey Maga
  • 14 May, 2024 08:52
Illegal Crypto Mining Farm Discovered in Karachay-Cherkessia

In a recent operation, law enforcement officials in Karachay-Cherkessia unearthed an illegal cryptocurrency mining operation hidden within a private residential house’s basement in the village of Chapaevskoye, Prikubansky district. This clandestine activity was revealed on May 13 by the local Interior Ministry, according to Interfax-russia.

The owner of the house had modified the electrical equipment to facilitate unrecorded electricity usage, allowing the mining setup to operate undetected. Investigations revealed that the rigged system failed to account for two-thirds of the electricity consumed, causing substantial financial loss. The power supply company reported damages exceeding 350,000 rubles due to this unauthorized consumption.

Authorities have since initiated a criminal case under part 1 of article 165 of the Criminal Code of the Russian Federation, which deals with causing property damage through deceit or breach of trust. The discovery underscores ongoing issues with illegal mining operations that tap into power supplies without proper accounting, posing both legal and economic challenges in the region.

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