Crypto Mining Farm Discovered In Russia’s Oldest Prison – Mining Bitcoin News


Russian law enforcement is investigating a crypto mining operation at Butyrka, Russia’s oldest prison. A deputy director was accused of stealing electricity to issue digital currency with the help of unidentified accomplices.

Deputy director suspected of mining cryptocurrency in Moscow prison

A high-ranking representative of the Butyrskaya prison administration in the Tverskoy district of central Moscow is under investigation for establishing a crypto mining farm. Also known as Butyrka, this prison, built in 1771, is Russia’s oldest prison.

Mint equipment was found in the building of a psychiatric clinic operated by the prison’s Federal Penitentiary Service. The Investigative Committee of the Russian Federation is currently examining one of the deputy directors for possible misconduct, the Kommersant newspaper reported this week.

Investigators have so far determined that the official installed the mining equipment in November 2021, along with as yet unidentified accomplices. The towers were mining the cryptocurrency until February of this year.

During this time, the machines consumed about 8,400 kW of electricity paid for by the government, with a total cost of more than 62,000 rubles (about $1,000). For this, the district governor is accused of “acts that clearly exceed his powers and thus significantly violate the legally protected interests of society or the state”.

Crypto mining with subsidized and sometimes stolen electricity has become an attractive source of additional income for many Russians. Regions such as Krasnoyarsk Krai and Irkutsk Oblast, which maintain historically low electricity tariffs for the population and public institutions, have become hotspots of unauthorized activity.

Illegal miners are blamed for frequent power outages and blackouts, especially in residential areas where power grids cannot handle overloads. To address this phenomenon, the Russian anti-monopoly agency recently proposed the introduction of higher electricity tariffs for home-based crypto miners.

Raids on underground mining operations have been carried out across the country, with law enforcement recently confiscating more than 1,500 mining rigs from two illegal cryptocurrency farms in Dagestan. One of them was printing cryptocurrency at a pumping station of the Water Supply Service of the Russian Republic.

Keywords in this story

Butyrka, Butyrskaya Prison, Crypto, crypto farm, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, illegal, Miners, mining, Moscow, prison, prison, Russia, russian, guard

What do you think will happen to the Russian prison official accused of illegal crypto mining? Let us know in the comment section below.

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Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ dictum “Being a writer is not what I do, but who I am”. Alongside crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

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