Last year, Russia’s Rosseti Group claimed losses of more than $14 million due to unlawful cryptocurrency mining.
Rosseti Group, a Russian power grid firm, said that “dark” cryptocurrency mining networks caused more than 1.3 billion Russian rubles ($14.2 million) in damage in 2024.
According to a report from state-owned news agency TASS, Rosseti’s electricity grid networks across the nation suffered damage, with the North Caucasus grid suffering the most, costing over 600 million rubles.
Rosseti’s Novosibirsk grid sustained 400 million rubles in damage, while its Center and Volga regions suffered losses of 120 million rubles, according to the TASS source.
According to the power company, the greatest single documented example of illicit crypto mining occurred in Novosibirsk, where one owner ran over 3,200 mining equipment that stole electricity on an “industrial scale,” resulting in losses estimated at 197 million rubles ($2.2 million).
According to the firm, mining farms in general cause power congestion, resulting in low voltage, which can harm other electrical equipment and residential appliances.
According to the Rosseti Group, 130 cases of unlawful connections and energy theft have been prevented, and more than 40 cases are being investigated under Russian criminal law, with the possibility of jail penalties.
Last November, Russian officials imposed seasonal prohibitions on cryptocurrency mining activities in many places, including the North Caucasus and the Zabaikalsky region of Siberia. Mining is forbidden in specific areas every year from November 15 to March 15, until 2031.
Earlier this month, the country’s Ministry of Energy revealed plans for a required register of cryptocurrency mining equipment to improve tracking of domestic mining activity.
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