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Russian authorities have intensified their crackdown on illicit cryptocurrency mining after a wave of power outages hit a rural village, allegedly caused by underground mining operations. The Federal Security Service (FSB), along with local law enforcement, raided multiple locations and seized hundreds of mining rigs, blaming the unauthorized activity for straining the regional power grid.
Illegal Mining Sparks Outages in Russian Village
The incident took place in a small village in the Irkutsk region, an area notorious for illegal mining due to its cheap electricity rates. Residents had reported frequent blackouts and voltage drops, prompting an investigation that uncovered large-scale mining farms operating without proper permits.
According to local energy providers, the excessive power consumption overloaded the grid, cutting off electricity to hundreds of households. Some miners had reportedly been siphoning power directly from the grid to evade high energy costs, a growing concern in Russia’s crypto mining sector.
FSB Raid and Equipment Seizure
The FSB, in coordination with regional police and energy officials, raided multiple sites, confiscating:
- Over 500 crypto mining rigs
- Dozens of high-powered GPUs and ASIC miners
- Unauthorized electrical connections and bypass systems
Authorities stated that the mining operators could face hefty fines and potential criminal charges for illegal electricity usage and damages to public infrastructure.
Russia’s Crypto Mining Boom and Crackdowns
Russia has become a global leader in Bitcoin mining due to its abundant energy resources. However, with the government tightening regulations, many small-scale and unauthorized miners have turned to stealth operations, tapping into residential power grids or industrial sites to avoid high electricity costs.
In 2023, Russian authorities introduced stricter regulations on mining, requiring industrial-scale miners to register with the government. However, illegal mining farms continue to thrive, particularly in Siberia and rural areas, where oversight is weaker.
What’s Next for Crypto Mining in Russia?
With power grids under pressure and local authorities increasing surveillance, illegal miners may face more frequent raids and crackdowns. The government is also exploring a new energy pricing model that could discourage unauthorized mining by imposing higher tariffs on excessive electricity usage.
Meanwhile, industrial mining operations continue to expand, with some regions offering legal mining incentives to attract institutional investors. Whether Russia will fully embrace crypto mining or tighten restrictions further remains an ongoing debate.
For now, the FSB’s latest crackdown sends a clear message—unauthorized mining will not be tolerated, especially when it disrupts local communities.
