Crypto Mining Operation Uncovered In Russia's Oldest Prison, Deputy Warden Accused Of Stealing Electricity

Between November 2021 and February 2022, the illegal mining setup consumed nearly 8,400kW of power.

Crypto mining rigs consume a large amount of power to operate.

Source : Getty

New Delhi: An illegal crypto-mining operation has been uncovered at Russia’s oldest prison, Butyrka. The prison’s deputy warden is currently under investigation. Located in the Tverskoy District in central Moscow, Butyrka’s current building was erected in 1879 and remains the largest of Moscow’s remand prisons. As per a report by Russian daily Kommersant, the Investigative Committee of the Russian Federation is currently on the case. In February this year, Russia’s finance ministry has prepared the country’s first draft bill on the regulation of cryptocurrencies, despite the Central Bank of Russia’s demand for a blanket ban on crypto mining.

The crypto mining hardware was reportedly spotted in the prison’s psychiatric clinic run by the Federal Penitentiary Service. The accused deputy warden is said to have set up the rigs in November last year, along with other accomplices who are yet to be identified. The mining equipment was extracting crypto until February this year. The deputy warden is being investigated for possible abuse of power.

ALSO ON ABP LIVE: Is Crypto Mining Legal In India? Here’s What Experts Say About It

Between November 2021 and February 2022, the mining rigs consumed nearly 8,400kW of power, paid for by the government at a total of over 62,000 rubles (roughly Rs 83,600).

Illegal miners have often been blamed for frequent blackouts and breakdowns in Russia’s residential areas. Crypto mining has grown into a lucrative business for many citizens. Even regions such as Krasnoyarsk Krai and Irkutsk Oblast, historically known for maintaining low electricity rates, have now become mining hotspots.

Russia hopes to regulate cryptocurrencies and all related activities, including mining, with its newly proposed bill. In the draft bill, the government says it hopes to create “ a legal market for digital currencies with the establishment of rules for their circulation and the circle of participants."