According to ShibDaily, Russian authorities have uncovered an illegal cryptocurrency mining operation within a three-story orphanage in the Siberian village of Kazaqiye. The Irkutsk Oblast Prosecutor’s Office reported the seizure of 96 mining rigs in the Bokhansky District. The operation was allegedly established by an unnamed non-profit organization, which had installed the equipment inside the orphanage. Although the building is registered as an educational facility, it is currently not operational.
Prosecutors found that the organization failed to adhere to fire safety and electrical regulations. Necessary maintenance checks on wiring and electrical equipment were neglected, and the facility lacked an automatic fire alarm system. Legal proceedings have been initiated against the head of the non-profit organization for breaching energy consumption regulations. The individual also faces charges related to the improper installation and operation of energy-intensive equipment, along with violations of fire safety protocols. The prosecutor has filed a claim to halt the misuse of the land by prohibiting mining activities and dismantling the equipment used for cryptocurrency production.
Crypto mining remains a contentious issue in the Irkutsk Oblast, where low electricity rates attract both unauthorized operators and legitimate industrial firms. In several parts of the region, including the Bokhansky District, mining is prohibited during winter months due to increased energy demand and strain on local power grids. Despite these restrictions, the area has become a hotspot for illicit mining activities, with authorities frequently cracking down on unauthorized operations exploiting subsidized electricity meant for residential and public use.
The harsh winters in Irkutsk and surrounding regions reduce the need for expensive cooling systems, making crypto mining more cost-effective. However, this increased activity has placed significant strain on the local power grid, raising concerns over energy consumption and infrastructure stability. In February, Aisen Nikolaev, head of the Republic of Sakha and chairman of the State Council Commission on Energy, proposed constructing dedicated power plants for crypto mining in Russia. This proposal aims to separate the industry’s high energy consumption from public electricity grids, thereby reducing strain on local infrastructure. Nikolaev warned that unregulated crypto mining has significantly increased electricity consumption in certain areas, leading to capacity shortages and lower power quality, particularly in regions with limited energy reserves, affecting both residents and local businesses.
