In a significant escalation of Russia's crackdown on unauthorized cryptocurrency mining, seven employees of PAO Rosseti Moscow Region, a major subsidiary of the national grid operator Rosseti, have been arrested. The workers, including electricians and lead engineers, are accused of providing paid services to owners of illegal mining farms, enabling their operations to evade detection since 2024.
The Russian Ministry of Internal Affairs investigation found that the employees' actions allowed two illicit Bitcoin mining data centers to operate on private property in the city of Chekhov. Their alleged services included manipulating electricity meter readings to underreport consumption and assisting the farms in avoiding both scheduled and unscheduled regulatory inspections. The employees were reportedly compensated in cash for their services.
The illicit activity has caused an estimated initial financial damage of about 10 million rubles to the electrical grid due to unaccounted-for electricity consumption. This case highlights systemic vulnerabilities within energy firms, where internal collusion exacerbates the strain caused by energy-intensive crypto mining. Rosseti has previously complained about millions in losses attributed to such illegal operations.
This arrest is part of a broader enforcement campaign. Just days prior, the Federal Security Service (FSB) and police dismantled an illegal mining farm in the Transbaikalia region. That operation, which caused over 5 million rubles in damage to the Priargunsky Industrial Mining and Chemical Association (PIMCHO), involved Bitcoin mining equipment directly connected to the industrial power grid. Authorities seized the equipment and initiated criminal prosecution under Article 165 of the Russian Criminal Code for causing large-scale property damage.
Looking ahead, Russian authorities are preparing more stringent measures. A draft government protocol indicates plans for a year-round ban on Bitcoin mining starting in 2026 in southern Buryatia and the Trans-Baikal Territory, aiming to curb illegal activity in high-risk areas. These events underscore the ongoing tension between Russia's restrictive cryptocurrency regulations and the clandestine economy they foster, with energy infrastructure stability being a primary concern for officials and companies like Rosseti.
