Nearly 10,000 mining machines seized at illegal mining farm in Russia's Ural region, causing electricity losses of almost 1.1 billion rubles

According to ChainCatcher, citing Bits.media, a large illegal cryptocurrency mining farm has been seized in Nizhny Tagil and the nearby Kushva region in Russia's Sverdlovsk Oblast. The mining farm was hidden within an abandoned industrial park and housed about 10 thousand mining machines. It was shut down during a joint operation by the Federal Security Service of Russia, local police, and a power company.

The local electricity company estimates that the mining farm's long-term illegal use of electricity caused losses of nearly 1 billion rubles (about $12.7 million). Investigators stated that its power consumption was enough to supply electricity to a small city. Law enforcement authorities have arrested three suspects, who are currently under house arrest, and have initiated a case on charges of "causing property damage through deception or abuse of trust." According to Russian law, those involved may face up to five years in prison.

Investigations revealed that the operators of the mining farm accessed the power grid through intermediaries and are suspected of tampering with meter data to conceal their actual electricity use. Law enforcement agencies reported that the farm’s real electricity consumption was about twice the approved amount. The local energy department initially launched an investigation due to frequent voltage fluctuations, power outages, and equipment failures in the abandoned factory area, eventually locating the farm. The local TV station also filmed a documentary called "Mining" to document the operation.