Russian authorities confiscate 238 mining machines from unauthorized operations on national territory.
According to the Russian news agency TASS, the Investigative Committee of the Russian Federation for the Irkutsk region conducted a raid in an area of the Priangarye locality, a community dedicated to agriculture and gardening. During the operation, 238 machines used for mining digital assets were confiscated. Authorities claim that the miners caused damage amounting to over 68 million rubles, approximately $758,000, by using electricity intended for domestic use.
The devices were in the possession of some members of the “Angarsky Bereg” association, a non-profit organization dedicated to agricultural activities. Recently, these areas have been used for unauthorized mining activities.
This is not the first operation by Russian authorities in the region. In July, Irkutsk authorities seized 500 mining machines from another agricultural community. In May, another operator was accused of illegal mining activities.
Electricity and regulatory issues
The Irkutsk region has become a hub for digital asset mining activities in Russia, thanks to low electricity prices and favorable climate conditions. Local energy companies have accused miners of overloading the power grids, often using inefficient equipment and taking advantage of subsidized electricity intended for domestic use.
A criminal investigation has been launched against the miners for fraud, due to their payment of electricity at a lower rate than the commercial one. The case is now with the local prosecutor for further legal action.
Region’s evolution as a mining hub
Since 2019, the Irkutsk region has seen an increase in mining activity, driven by the ban in China and lower electricity tariffs for domestic needs. However, many operate without authorization, installing equipment in homes, garages, and other private spaces.
As of September 1st, industrial mining of digital assets is legal in Russia. Miners must register with an official registry and may have to pay higher electricity rates. Local authorities can also require miners to shut down their equipment in case of power grid overload.
