Illegal mining farm caused $7 million in damage

In Chuvashia, an illegal bitcoin mining farm was discovered, causing $7 million in damages to a local energy company. According to the Chuvash Ministry of Internal Affairs, the entrepreneur operating the farm was detained and charged with large-scale fraud.

Employees of the Chuvash Power Supply Company noticed increased energy consumption on several plots in the Kanashsky district. Following an investigation, it was determined that these plots were being used for cryptocurrency mining. The entrepreneur involved in the farm had signed contracts with the power supply company, posing as an ordinary consumer and claiming that residential houses were located on the plots. However, it was discovered that containers filled with bitcoin mining equipment were actually on site. Investigators found that the miner was consuming far more electricity than the average residential user.

During the search, more than 40 pieces of specialized bitcoin mining equipment were seized by authorities. The entrepreneur was detained and charged with large-scale fraud, and the damages caused to the energy company totaled $7 million.

Earlier, an illegal cryptocurrency mining farm was discovered in a cowshed in the Irkutsk region, Russia. Law enforcement officers, energy company specialists, and riot police found over 60 mining devices in the cowshed and garage of a local farmer. Complaints about illegal electricity consumption began in 2022, and officials tracked down the illicit consumers in March 2023. The total amount of illegally consumed electricity exceeded 2.5 million rubles. Police seized the mining equipment and initiated a criminal case under Part 2, Article 165 of the Criminal Code of the Russian Federation (causing property damage by deception or abuse of trust).