Crypto News: Russian authorities seize 500 crypto mining rigs in BTC hotspot raid
Russian authorities have announced the seizure of 500 crypto mining rigs in a raid on the Bitcoin (BTC) mining hotspot of Irkutsk.
According to the news agency, a group of crypto miners caused over $2.3 million in “damage.”
The Investigative Committee of the Russian Federation for the Irkutsk Region reported on July 19 that the mining equipment was found in properties belonging to members of the dacha and summer cottage communities.
The committee stated that the rigs belonged to residents of the Uyutnoye dacha community and the Molodezhnoye cottage village in the Irkutsk Region. Investigators indicated that the residents used power from electrical networks supplying citizens of the Irkutsk Oblast.
While the miners did not steal electricity from the grid, they allegedly paid for electricity consumption at the preferential household rate.
This development marks a significant shift in the Russian BTC mining sector. Until recently, authorities primarily targeted miners stealing power through illegal connections.
BTC mining still lacks legal status in Russia, despite recent efforts to legalize and tax industrial mining firms. However, power providers have complained that their grids are under pressure in many parts of the country, including Irkutsk.
Last week, President Vladimir Putin addressed the issue, suggesting that regions like Irkutsk needed the authority to clamp down on crypto miners. Irkutsk, one of Siberia’s largest cities, offers some of the nation’s lowest electricity rates and has attracted miners due to its cold winters, which reduce cooling costs.
Putin proposed that Irkutsk and other regions could respond by banning BTC mining in certain areas. He also noted that, according to government calculations, crypto mining accounts for 1.5% of the nation’s total electricity usage. The President called on his government to fast-track crypto regulations. While he did not directly address a potential ban, most commentators in Russian media believe Putin favors legalizing the sector in some form.
Vladimir Putin supports a Russian government proposal to tax and regulate cryptocurrency mining, rejecting the central bank’s proposal to ban it completely.
