Russian law enforcement officials are investigating a crypto mining business in Russia’s oldest prison, Butilka. The Deputy Chief Cabinet Secretary has been accused of stealing electricity to cast digital coins with the help of an unidentified accomplice.
Deputy Chief Cabinet Secretary Suspected of Mining Cryptocurrencies in Moscow Prison
A senior official at the Bucheilskaya prison in the Tverskoy district of central Moscow is investigating to establish a crypto mining farm.Also known as ButylkaThis is Russia’s oldest prison, built in 1771.
Coin minting hardware was found on the premises of a psychiatric clinic run by a federal prison. The Investigative Committee of the Russian Federation is currently checking one of the deputy guards for possible abuse of power, Kommersant reported this week.
Investigators have so far proved that officials installed a mining facility in November 2021 with his unidentified accomplice. The rig was extracting cryptocurrencies until February of this year.
During that period, the machine consumed about 8,400 kW of electricity paid by the government, with a total cost of over 62,000 rubles (nearly $ 1,000). For this reason, the Deputy Chief Cabinet Secretary has been accused of “obviously acting beyond his power, thereby significantly violating the legally protected interests of society or the state.”
Cryptocurrency mining with subsidized and sometimes stolen electricity has become an attractive additional source of income for many Russians. Areas that have historically kept electricity prices low for populations and public institutions, such as the Krasnoyarsk region and the state of Irkutsk, have become hotspots for unauthorized activities.
Illegal miners have been accused of frequent breakdowns and Power outageEspecially in residential areas where the power grid cannot handle Excessive load.. To address this phenomenon, Russian antitrust agencies have recently proposed to introduce high electricity prices to household cryptocurrency miners.
Recently, along with law enforcement agencies, attacks have been carried out on underground mining projects nationwide. Grab Over 1,500 mining rigs from two illegal crypto firms in Dagestan. One of them was to cast cryptocurrencies at the pumping station of a water company in the Russian Republic.
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