Russian prosecutors have dismantled a large illegal cryptocurrency mining farm located in Nazarovo, Krasnoyarsk Krai. This mining operation, disguised as a non-existent industrial plant on a 30,000-square-meter plot of state-owned land, was reportedly generating over 4.6 million rubles ($58,000) monthly. The miners had no legal right to use the land, and their equipment was directly connected to the town's power grid without authorization, raising serious safety and electricity outage concerns.
The operation violated fire safety regulations and continued despite warnings from prosecutors, leading to a court order suspending all activities until legal issues are resolved. The crackdown reflects greater federal measures against illegal mining amid expanding legal frameworks and regional power shortages in Russia. Mining is legal throughout most of Russia, but some Siberian regions impose restrictions to mitigate power grid strain.
Similar illegal mining setups have been found recently, including a mobile rig hidden in a truck in Buryatia, connected illicitly to power lines. The Russian government has banned mining during peak energy demand periods in multiple regions and imposed full bans in mining hubs like Irkutsk.
Additionally, cybersecurity firm Kaspersky reported that a hacking group named Librarian Ghouls (aka Rare Werewolf or Rezet) has been infecting Russian business computers with unauthorized Monero mining software while stealing crypto wallet credentials, targeting industrial and educational institutions across Russia and the CIS.
This enforcement effort underscores Russia's dual challenge of promoting legal crypto mining while combating illegal operations that threaten infrastructure and public safety.