Operatives of the FSB of Dagestan liquidated a mining farm and confiscated 4,343 pieces of equipment from a group of local residents for a total of 500 million rubles.
The Federal Security Service announced the destruction of the “underground data center” on Thursday, January 20. The crypto farm consumed 8 MW of electricity per hour and therefore “represented a socio-economic threat to the security of the region.”
Mining farms illegally extracting crypto-currencies can cause overload, lead to power outages and failure of the equipment of the local grid company, they assure the FSB. The activities of “gray miners” require radical action by law enforcement agencies, local authorities and energy companies, security officials believe.
Dagestan miners are going to be put on trial, where they face a fine for causing economic harm to local energy companies. Now the Dagenergo branch of the Rosseti North Caucasus company is calculating the exact amount of material damage.
Last year, Sergey Polyakov, Deputy General Director for Interaction with Authorities and Civil Society Institutions of Rosseti North Caucasus, called on law enforcement agencies to take special control over miners illegally connecting to networks. He suggested that the local Ministry of Energy apply to the government of the Russian Federation with the initiative to introduce into the Criminal Code punishment for theft of electricity, up to criminal liability.
In 2019, the Russian Ministry of Internal Affairs announced the arrest of a Dagestan miner suspected of stealing electricity, who, according to power engineers, caused damage to them for 4.5 million rubles.
Last year, Irkutskenergosbyt began the fight against shadow mining. The electricity supplier filed lawsuits against the owners of private mining farms for 73.3 million rubles.
On January 20, the Central Bank of the Russian Federation launched a round of public consultations on a complete ban on operations with cryptocurrencies in Russia, including trading and mining.