RZD Employees Arrested for Illegal Crypto Mining on Substations

Russian Railways employees were arrested in Saint Petersburg for operating hidden crypto mining farms. The illegal activity caused over 1 billion rubles in damages.

Mining rigs secretly operated on Russian Railways’ substations

A court in Saint Petersburg has ordered the arrest of Sergey Kuznetsov, head of an RZD energy unit, and his deputy Nikolay Baltser. Both are accused of facilitating illegal cryptocurrency mining at RZD’s Gromovo and Lugovaya substations.

According to investigators, an unidentified organizer engaged the two employees to set up mining equipment using the company’s infrastructure. In exchange, the officials were promised financial compensation for their assistance.

Illegal mining caused over 1 billion rubles in electricity losses

The mining rigs were reportedly connected to the power grid starting from September 16, 2024. Over the course of a year, they consumed electricity worth nearly 1 billion rubles. The bill was paid by the October Directorate of RZD’s power division.

Law enforcement claims that the employees were fully aware of the damage they were causing, endangering the stable operation of the energy network. Both face criminal charges under Article 286, Part 3 of the Russian Criminal Code. If convicted, they may serve up to 10 years in prison.