Irkutsk Grapples with Illegal Crypto Mining: 350 Million Rubles on the Line

 Irkutsk power companies are battling illegal miners in court, aiming to recover roughly 350 million rubles for stolen electricity. The press service of Irkutskenergosbyt, the region’s leading electricity supplier, confirmed this escalating conflict, according to tass.ru.

Currently, 430 cases await judgement. Crypto miners often exploit loopholes, paying for electricity at residential rates, which are significantly cheaper than commercial ones. As a result, crypto-farms now lurk in homes, garages, even schools, and psychiatric hospitals.

Over the past five years, Irkutskenergosbyt has launched 1,491 lawsuits. The courts have favored them in 855 cases, meaning residents owe over 360 million rubles.

One striking case emerged from Bayandai, where a resident consumed 75% of the settlement’s power for crypto mining. He concealed his operations beneath hay stacks. The court’s verdict? A hefty 28 million ruble fine.

Such cases highlight the wider problem in the Irkutsk region, known as Russia‘s crypto mining capital. Due to the region’s attractive low electricity tariffs, crypto-mining surged. Consequently, in 2021, regional governor Igor Kobzev suggested classifying crypto-mining as a business. This move would hike tariffs, offsetting increased grid loads. The decision now lies with the Russian government.

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