🚨Russia’s Power Grid Hit by Unauthorized #Crypto Mining, Losing Over 1.3 Billion Rubles.

Russia's power grid company faced a staggering loss of over 1.3 billion rubles ($14.2 million) in 2024 due to unauthorized cryptocurrency mining. The widespread damage affected the company's electrical networks, particularly in the North Caucasus region, with losses exceeding 600 million rubles. Novosibirsk and the Center and Volga regions also reported significant losses, at 400 million and 120 million rubles, respectively.

In Novosibirsk, a single operator ran around 3,200 mining devices, illegally consuming electricity on an industrial scale and causing an estimated loss of 197 million rubles ($2.2 million). These unauthorized operations led to power grid congestion, resulting in low voltage issues that could damage electrical appliances. Authorities have intercepted 130 instances of unauthorized power use, with over 40 cases under criminal investigation, which may lead to prison sentences.

Interestingly, while these illicit activities drained resources, Rosseti announced exploring cryptocurrency mining as a means to optimize underutilized power capacity just last month. The initiative aims to efficiently use idle power supply centers, increase tariff revenues, and contribute to regional economic growth through tax revenue. The company's extensive grid network could facilitate the coordination of mining infrastructure and connect energy consumers to underloaded power centers.

Discussions about Rosseti's potential entry into the mining industry, including the development of a specialized tariff system to regulate energy use, are ongoing. Rosseti emphasized its advanced energy infrastructure, which includes modern switching equipment and load management systems designed to ensure power grid stability. This strategic move aligns with the company's broader goal of modernizing Russia's electric grid and integrating emerging industries.