Russian authorities continue their crackdown on illegal cryptocurrency mining in the Irkutsk Region, seizing 238 mining rigs from a community reportedly dedicated to gardening. The illegal miners are accused of causing damages worth over 68 million rubles by overloading power grids and using subsidized electricity intended for residential use to power their operations. This region has become a hotspot for crypto mining due to low energy rates and temperatures. The rise of Irkutsk as a mining destination is attributed to a ban on crypto mining in China and low electricity tariffs for the population in Russia.
Energy professionals suggest that crypto mining has been prevalent in Irkutsk since 2019, with most miners operating illegally by setting up equipment in various locations such as houses, apartments, garages, summer cottages, and balconies. As of September 1, industrial crypto mining has been legalized in Russia, but miners must register with a central regulator and may face higher electricity rates. Provinces also have the authority to temporarily shut down mining operations when the power grid is overloaded. In recent months, authorities have been cracking down on illegal mining operations in the region, with multiple seizures of mining rigs from different communities.
The Investigative Committee of the Russian Federation for the Irkutsk Region has launched a criminal case against the illegal miners, charging them with fraud-related offenses for paying discounted rates for electricity intended for household use. The confiscated mining equipment was reportedly in possession of residents of the Angarsky Bereg gardening partnership, a non-profit organization of agriculturalists working in rural areas. Authorities in Irkutsk have been targeting illegal miners who connect to the power grid using makeshift equipment, leading to disruptions and damages.
Russia’s efforts to combat illegal cryptocurrency mining come as the country seeks ways to navigate US and EU-led sanctions. With the legalization of industrial crypto mining, miners are now required to register their operations and may face additional regulations such as higher electricity rates. Irkutsk authorities have seized hundreds of mining rigs from various communities in recent months, aiming to enforce compliance with regulations and prevent disruptions to the power grid. Experts estimate that around 90% of Russian crypto miners focus their efforts on Bitcoin, making the region a significant hub for cryptocurrency mining in the country.
The Irkutsk Region in Southeastern Siberia has become a de facto center of crypto mining in Russia, attracting miners with its low energy rates and temperatures. The region’s popularity among miners has led to concerns over power grid overloads caused by illegal mining operations. Authorities are cracking down on these activities, seizing mining rigs and initiating criminal cases against offenders. Despite the crackdown, crypto mining continues to thrive in Irkutsk, with the region serving as a key destination for miners seeking favorable conditions for their operations. As the crypto mining landscape evolves in Russia, authorities are working to regulate the industry and prevent illegal activities that could disrupt the energy sector.
