An incident was uncovered in the Irkutsk region of Russia, where 96 illegal cryptocurrency mining machines were found installed in a closed orphanage.
Despite the authorities' crackdown, illegal mining activities targeting cheap electricity rates in Siberia have been increasing, and effective suppression has not been achieved.
According to the Russian Prosecutor's Office, law enforcement authorities discovered an illegal cryptocurrency mining operation hidden in an orphanage in the Siberian region.
On the 13th (local time), CryptoNews reported that, according to an official statement from the Irkutsk Oblast Prosecutor’s Office, police seized 96 mining machines from a facility located in the Kazachye village of the Bokhansky District in Irkutsk.
Irkutsk is Russia’s first and largest Bitcoin mining hub, and there has been a recent increase in illegal cryptocurrency mining activities.
The prosecutor's office explained that an anonymous Siberian non-profit organization had been operating the "mining farm" and had installed the mining machines in the orphanage.
The orphanage, a three-story building, is currently closed but is still registered as an educational facility.
The Irkutsk court has ordered the bailiffs to disconnect the mining equipment and "cease the misuse of land.
" The prosecutor’s office stated that the operators of the mining farm violated electrical and fire safety laws, putting people's lives at risk.
Authorities mentioned that the operators had not performed "preventive maintenance" on the "electrical equipment and wiring" they used.
Additionally, the prosecutor’s office added that fire alarms and other safety devices were not installed.
The prosecutor's office has charged the representative of the non-profit organization with violating energy usage regulations.
They also charged the same individual with violating rules regarding the construction and operation of energy-consuming equipment and fire safety regulations.
Cryptocurrency mining is illegal in many areas of Irkutsk Oblast, including the Bokhansky District, during the winter months.
However, due to the low electricity rates, it remains an attractive region for both illegal miners and legitimate industry participants.
The region's notoriously cold winters also mean that miners can save on cooling costs.
However, this has placed a tremendous strain on the power grid in Irkutsk and surrounding areas.
As a result, the governor of Irkutsk has called for a ban on cryptocurrency mining throughout most of the region until 2031.
Despite these bans, there is little evidence that they have effectively curbed illegal cryptocurrency mining in Irkutsk or other parts of Russia.
Major Russian media outlets have reported that illegal mining operators are installing equipment in apartments, private land, garden associations, and commercial buildings.
Energy experts have warned that many of these locations were "not built to handle such a large electrical load." Last month, authorities in the Irkutsk Markova settlement discovered a "mining farm" with 150 mining machines.
Law enforcement stated that "local residents used a facility consisting of four plots to house ASIC Bitcoin miners and connected them to transformers using illegal cable connections."
Other regions in Siberia have also promised to "fight back" against illegal and semi-legal cryptocurrency mining operators.
According to the Tyumen branch of the media outlet MK, officials in Tyumen Oblast, located east of the Ural Mountains, stated that they would "prepare measures to respond to the increasing 'gray' cryptocurrency mining in the region."
During a meeting with Pavel Perevalov, the deputy governor, members of the Tyumen Ministry of Housing and Public Utilities, local law enforcement, and public utilities companies pledged to prepare relevant proposals by April 1.
