Russia Loses $14.2M to Illegal Crypto Mining in 2024

Russian power grid company Rosseti Group reported that illegal cryptocurrency mining operations have caused over 1.3 billion rubles ($14.2 million) in damages across the country’s power grids in 2024.

According to a report from state-owned news agency TASS, the largest losses were recorded in the North Caucasus grid, totaling over 600 million rubles. The Novosibirsk grid followed with 400 million rubles in damages, while the Center and Volga regions saw losses of 120 million rubles.

Illegal Mining Drains Russia’s Power Grid

One of the largest recorded cases of illegal mining was uncovered in Novosibirsk, where authorities found an operation running 3,200 crypto mining devices, illegally consuming electricity on an industrial scale. This single case alone resulted in an estimated loss of 197 million rubles ($2.2 million).

Rosseti warned that illegal mining operations create power congestion, leading to low voltage levels that can damage electrical equipment and household appliances.

To combat these issues, the company reported that:

• 130 unauthorized electricity connections have been shut down.
• More than 40 cases are currently under criminal investigation, potentially leading to prison sentences.

Russia Tightens Regulations on Crypto Mining

Russia has been stepping up its crackdown on unauthorized crypto mining. In November 2023, authorities introduced seasonal bans on crypto mining in multiple regions, including North Caucasus and Siberia’s Zabaikalsky region.

Mining is now prohibited annually from November 15 to March 15 until 2031, a move aimed at reducing winter power shortages caused by excessive electricity consumption.

Additionally, earlier this month, Russia’s Ministry of Energy announced plans to create a mandatory registry of cryptocurrency mining equipment to track domestic mining activities and prevent further illegal operations.

Conclusion: Russia’s Crackdown on Black Crypto Mining Continues

The rise of illegal crypto mining in Russia has led to significant financial losses and energy supply issues. With stricter seasonal bans and regulatory measures, the government is taking active steps to curb unauthorized mining operations.

🚀 Will stricter monitoring and penalties be enough to stop illegal mining, or will underground operations continue to thrive?