An unnamed deputy warden was digging through old bones at a Russian prison that’s been open since 1771. It turns out that Butyrka, Russia’s oldest prison, has become the center of illegal crypto mining activities, as an underground mining farm was found to have been running for at least quarter of a year in the psychiatric ward of the most infamous prison in Moscow.

Use Power to Steal Power

A team of workers assisted the deputy warden from Butyrka in illegal crypto mining operations. He could face charges of stealing and abuse of electricity. Since November 2021, the mining equipment has been in operation at the hospital’s psychiatric ward. Between November 2021 and February 2022 the operation was operational for approximately 25% of a calendar year.

The Investigative Committee of the Russian Federation calculates that 8,400 kW of electric power was stolen during the period, and evaluates the losses incurred to be 62,000 rubles, or $1091,07 USD at today’s exchange rate. The deputy warden is being charged with taking “actions that clearly go beyond his powers, thereby significantly violating the legally protected interests of the society and the state.’

Russians are attracted to cryptocurrency mining as a way of generating extra income

Many Russian citizens turned to illegal cryptocurrency mining, even though they are under economic sanctions for Russia’s invasion of Ukraine. Two such areas are Krasnoyarsk, Irkutsk. They have been known for their blackouts due to disruptions by crypto mining operations. It is common for such incidents to occur in residential areas, as the electricity grid cannot cope with the excess load.

Russian Anti-Monopoly Unit Raids Underground Miners

In Tatarstan, Dagestan, and elsewhere underground crypto mining is a popular activity. Already, the Anti-Monopoly Unit has seized 1,500 devices and raided more than 500 sites. Some cases include gas stations, schools, libraries in Makhachkala, Dagestan’s capital city.

There is a new attempt to control crypto activities

Russian State Duma members are currently working on the first crypto bill. Though the timeframe is currently vague, the Minister of Finance is adamant that it will happen “eventually”, despite strong opposition from the representatives of the Central Bank. As a means of curbing crypto mining, the Anti-Monopoly Unit proposed increasing electricity costs.

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