Bitcoin miner stole $80,000 worth of power from Russia’s next crypto mining hotspot

Russia’s northwestern Komi Republic wants to reinvent itself as the country’s top Bitcoin mining hotspot by the end of 2026 — but some aren’t prepared to wait that long.

Police have arrested a man who allegedly stole $80,000 worth of power from the region’s grid to power his rigs.

The man, a 39-year-old farm owner, used a series of illegal connections to link his devices to the republic’s power grid in an outbuilding on his property, the Russian Ministry of Internal Affairs’ Komi Republic branch wrote.

In 2024, Komi Republic officials announced plans to build 15 crypto mining data centres. Construction has already begun on two of these, which are set to cost a combined total of over $28 million.

One of the centres is being built in a major industrial park and will have a capacity of 114 MW, Russian media outlet CNews reported in November. Officials say the first of the mining centres will go online by the end of the year.

Komi’s move could see the Russian Bitcoin mining industry shift away from Southern Siberia, its long-standing heartland, and further north, to parts of the country with richer energy resources and underdeveloped industrial sectors.

Illegal connections

Investigators have accused the miner of operating more than 80 ASIC crypto-mining rigs housed in a warehouse designed to store logging equipment and combine harvesters.

He used a complex connection system to bypass his property’s meters, running a power cable directly from a transformer substation, police say.

The man also failed to register his activities with the Federal Tax Service, investigators say. Under Russian law, private citizens may use only 6,000 kWh per month.

This amount, Russian media outlet RBC reported, is only enough to provide power for two or three of the most modern ASIC rigs.

The ministry said it had worked with the Federal Security Service, or FSB, to help identify and arrest the man. Officers raided the property and discovered that the rigs had been operating since August. Bailiffs have confiscated the mining rigs.

The man will face charges of breach of trust and property damage.

However, if lawmakers get their way, illegal miners will soon face stricter punishments, including possible jail time and hefty fines.

The measures will be bundled with the country’s next batch of crypto laws, which are slated for debate in the State Duma’s upcoming spring session.

Tim Alper is a News Correspondent at DL News. Got a tip? Email him at [email protected].