Russian Power Company Reports

Russian Power Company Reports $14 Million Loss Due to Illegal Crypto Mining

 

Russian electricity provider Rosseti has reported $14 million (1.3 billion rubles) in damages from illegal cryptocurrency mining in 2024, with the North Caucasus, Novosibirsk, and the Volga Region being the hardest-hit areas.

According to the TASS publication, authorities identified 130 cases of unlicensed mining operations, which overloaded power grids and led to low voltage issues for residential areas.

Mining farms were found in warehouses, underground parking lots, and even makeshift containers on rented land. In one extreme case in Novosibirsk, 3,200 mining rigs were discovered, stealing electricity on an industrial scale, with damages reaching $2.1 million (197 million rubles).

Rosseti and law enforcement agencies have launched a major crackdown, leading to over 40 criminal cases and multiple arrests. Illegal crypto mining remains a significant issue in Russia, as miners seek to bypass rising energy costs and restrictions.

With increasing government scrutiny and regulatory pressure, Russia may soon introduce stricter oversight on mining operations, particularly as global bitcoin adoption accelerates.