Crypto Mining Farm Was Discovered In Russia’s Oldest Prison

Crypto Mining Farm Was Discovered In Russia’s Oldest Prison

At Butyrka, Russia’s oldest prison, law enforcement officers are looking into a crypto mining activity. With the help of unnamed accomplices, a deputy warden is suspected of stealing energy to mint digital currency.

A high-ranking member of the management of Butyrskaya jail in central Moscow’s Tverskoy District is being investigated for setting up a crypto mining farm. This, also known as Butyrka, is Russia’s oldest jail, dating back to 1771.

The coin minting equipment was discovered in the Federal Penitentiary Service’s psychiatric clinic at the prison. According to the business newspaper Kommersant, the Russian Federation’s Investigative Committee is presently investigating one of the deputy wardens for alleged power abuse.

The officer, together with unidentified accomplices, installed the mining equipment in November 2021, according to the investigators. Until February of this year, the rigs were mining cryptocurrency.

During that time, the machines used about 8,400 kW of power, which the government paid for at a cost of over 62,000 rubles ($1,000). The deputy warden is accused of “actions that clearly go beyond his powers, thereby significantly violating the legally protected interests of the society or the state” as a result of this.

For many Russians, crypto mining using subsidized and occasionally stolen power has become an appealing source of extra money. Regions like Krasnoyarsk Krai and Irkutsk Oblast, which have long had cheap power rates for the general people and government organizations, have become hotspots for illicit activities.

Illegal miners have been blamed for a slew of outages and blackouts, especially in residential areas where electrical networks can’t manage the extra load. To combat the problem, Russia’s anti-monopoly watchdog has urged that home crypto miners pay higher power bills.

Law enforcement organizations have raided underground mining operations across the nation, with over 1,500 mining machines recently seized from two illicit cryptocurrency farms in Dagestan. One of them was minting cryptocurrencies at a water supply pumping facility in the Russian republic.

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