Crypto Mining Farm discovered in Russia’s oldest prison – Mining Bitcoin News

Russian law enforcement is investigating a cryptocurrency operation in Butyrka, Russia’s oldest prison. A deputy chief was accused of stealing electricity to mint digital coins with the help of unidentified accomplices.

Deputy Inspector suspected of mining cryptocurrency in the Moscow prison

A senior representative of the management of the Butyrskaya prison in central Moscow’s Tverskoy district is under investigation to establish a crypto mine operation. Also known as Butyrka, it is Russia’s oldest prison, built as far back as 1771.

The execution equipment was found in a psychiatric clinic run by the prison’s federal prison service. The Russian Federation’s investigative committee is currently investigating one of the deputy directors for possible abuse of power, the business newspaper Kommersant reported this week.

Investigators have so far determined that the official, along with his as yet unidentified accomplices, installed the mining equipment in November 2021. The rigs were extracting the cryptocurrency until February this year.

During this period, the machines consumed almost 8,400 kW of electricity paid for by the government at a total cost of more than 62,000 rubles (almost $ 1,000). For this, the sub-prefect is accused of “actions that clearly go beyond his powers and thus significantly violate the legally protected interests of society or the state”.

Crypto-mining with subsidized and sometimes stolen electricity has become an attractive source of additional revenue for many Russians. Regions such as Krasnoyarsk Krai and Irkutsk Oblast, which have historically maintained low electricity prices for the population and public institutions, have become hotspots for unauthorized activity.

Illegal miners have been accused of frequent power outages and power outages, especially in residential areas where the electricity grid is unable to handle excessive loads. To address the phenomenon, the Russian Antimonopoly Agency recently proposed the introduction of higher electricity tariffs for home-based crypto-workers.

Raids have been carried out against underground mining across the country, with law enforcement recently seizing more than 1,500 mining rigs from two illegal cryptocurrency farms in Dagestan. One of them minted cryptocurrency at a pumping station at the Russian Republic’s water supply service.

Keywords in this story

Butyrka, Butyrskaya prison, Crypto, cryptopharm, cryptocurrencies, cryptocurrencies, cryptocurrencies, cryptocurrencies, illegal, miners, mining, Moscow, prison, prison, Russia, Russian, guard

What do you think will happen to the Russian prison official accused of illegal cryptocurrency mining? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a technically savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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