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Siberian Official Busted for Illegal Crypto Mining

Siberian Official Busted for Illegal Crypto Mining

A Siberian local government official has been apprehended for “illegally mining crypto” in his garage, where he utilized a makeshift power grid connection.

The unnamed individual was a lawmaker for the Krivodanovsky Rural Council in the Novosibirsk Oblast, according to a spokesperson from the Novosibirsk Oblast’s Prosecution Service in a Telegram post.

Siberian legislator Significantly damaged the Power Grid

The prosecutor’s office stated that the lawmaker had been accused under Article 165 of the Russian Criminal Code.

The article discusses “causing property damage on a huge scale through deception.”

Siberian Official Busted for Illegal Crypto Mining - Protechbro: Top Stories on Bitcoin, Ethereum, Web3, & Blockchain
Source: Novosibirsk Oblast’s Prosecution Service

The spokesperson asserted that the lawmaker mined an unnamed coin from June 2022 to June 2023.

According to reports, he did so without obtaining a permit from JSC RES, the state-owned power provider in Novosibirsk.

According to investigators, the individual purchases various crypto-mining equipment from online vendors.

They claimed that he installed the apparatus in a garage in the village of Krivodanovka. They also stated that he utilized “power-receiving devices” with an “unauthorized connection.”

Siberian Official Busted for Illegal Crypto Mining - Protechbro: Top Stories on Bitcoin, Ethereum, Web3, & Blockchain
Source: Novosibirsk Oblast’s Prosecution Service

The man’s apparatus was connected to the grid using “piercing clamps,” according to the prosecutors.

According to reports, he connected these to “an overhead line on an electric pole” that led to “an electrical substation” near the garage.

Prosecutors also reported having seized 16 crypto-mining devices from the garage. They claimed to have confiscated crypto mining hardware valued at over $11,300.

They further stated that the individual stole electricity valued at approximately $61,350 to operate his rigs. The prosecution service has since submitted its case to a branch of the Novosibirsk District Court.

The spokesperson further stated that “the Criminal Code of the Russian Federation provides for a punishment of imprisonment for up to five years” if he is convicted.

Siberian Official Busted for Illegal Crypto Mining - Protechbro: Top Stories on Bitcoin, Ethereum, Web3, & Blockchain
Source: Novosibirsk Oblast’s Prosecution Service

ETH Focus?


Novosibirsk has intensified its enforcement of unlawful home-based crypto miners, asserting that most utilize illegal power connections.

In October, law enforcement officers searching for a property in the northeastern Moshkovsky District reported discovering “six administrative violations.”

According to officials, the property proprietor had “earned 12 million rubles [over $123,000]” from his mining operations.

Cryptonews.com has observed numerous unverified assertions on online Russian crypto-related forums that most Siberian home miners concentrate on mining Ethereum (ETH).

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