Russian energy group Rosseti reports unauthorized mining activities causing electrical overloads and damage to infrastructure.
The Russian energy company Rosseti Group has reported damages exceeding 1.3 billion rubles (about $14.2 million) caused by illegal cryptocurrency mining activities throughout 2024. According to state news agency TASS, these unauthorized activities have impacted electrical grids in various regions across the country.
The most significant impact was recorded in the North Caucasus network, where damages exceeded 600 million rubles. The Novosibirsk network suffered losses of 400 million rubles, while the Central and Volga regions experienced damages totaling 120 million rubles.
The most striking case was discovered in Novosibirsk, where a single operator was managing around 3,200 mining devices, drawing electricity on an “industrial scale,” causing estimated losses of 197 million rubles ($2.2 million).
According to Rosseti, these illegal mining farms not only steal energy but also create congestion in the electrical grid, leading to voltage drops and damaging electrical equipment and appliances across the serviced area.
The company has reported interrupting 130 cases of unauthorized connections and electricity theft. Over 40 cases are currently under review by Russian courts under criminal laws, with the possibility of prison sentences for those responsible.
In response to the phenomenon, Russian authorities have imposed seasonal bans on mining activities in various regions, including the North Caucasus and the Zabaikalsky region in Siberia.
