ME News reports that on June 2 (UTC+8), a large illegal cryptocurrency mining operation was dismantled in Nizhny Tagil, Sverdlovsk Oblast, Russia, and the neighboring Kushva region. The mine, concealed within an abandoned industrial park, housed approximately 10,000 mining rigs and was shut down jointly by the Federal Security Service of Russia, police, and local power utilities. The regional power company estimated that the prolonged illegal electricity consumption caused losses of nearly 1 billion rubles (approximately $12.7 million). Authorities have arrested three suspects, who are currently under house arrest, and have opened a criminal investigation under charges of “causing property damage through fraud or abuse of trust,” with the maximum penalty being five years in prison. Investigations revealed that the operators accessed the power grid through intermediary entities and allegedly tampered with meter data to conceal their actual electricity usage, which was roughly twice the legally permitted amount. (Source: ODAILY)
Russian authorities seize 10,000 miners in an illegal crypto mining operation, with electricity losses nearing 1 billion rubles.
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Summary
Russian authorities in the Urals region have shut down an illegal crypto mining operation in Sverdlovsk, seizing 10,000 mining devices from a concealed site in a disused industrial park. The FSB, police, and energy companies raided the facility, which caused nearly one billion rubles in electricity losses. Three suspects face charges of property damage, accused of using intermediaries and tampering with meters to conceal their energy usage. The crypto market remains sensitive to such crackdowns, with the Fear & Greed Index reflecting ongoing regulatory risks.
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