Russian police have conducted raids on four large “illegal” data centers in Siberia, seizing over 3,200 crypto mining rigs. The Novosibirsk branch of the Russian power provider Rosseti reported that the centers were part of an interconnected “network” running in different parts of the city of Novosibirsk. The centers were estimated to have stolen a total of $2.1 million worth of electricity from the grid. Police officers shut down the operations and seized nine power transformers and over 3,200 cryptocurrency mining devices in the largest city in Siberia.
Power providers in Siberia have been cracking down on illegal crypto mining, particularly those mining operations that utilize illegal connections to steal electricity. Novosibirsk police conducted simultaneous raids on the four crypto farms operating near a wastewater treatment plant, in a forest, near a city landfill, and in a private sector area. The farms were equipped with modern power equipment but were not using legal connections to the power grids. Charges have been pressed against the operators, who could potentially face jail time if convicted.
The crackdown on illegal crypto mining has been ongoing in Siberia and beyond, with recent discoveries of illegal mining farms in various regions. In Irkutsk Oblast, a 217-rig mining farm was shut down in late March, and a 35-year-old man was charged with stealing $11,000 worth of power. In other regions like Krasnoyarsk, Omsk, and Khakassia, multiple illegal mining farms have been shut down by Rosseti and local police. The fate of the industrial mining industry in Moscow remains uncertain as miners express a willingness to pay taxes on their income and major firms offer to assist the government in launching national IT projects.
In a related development, Russian courts rejected Google’s appeal against a $49.4 million fine for failing to delete what Russia considers fake information about the war in Ukraine. The fine was imposed as a share of Google’s annual turnover in Russia. This decision reflects the growing scrutiny and control over online content in Russia. The government’s efforts to regulate information dissemination and maintain control over digital platforms are evident in the enforcement actions against tech giants like Google.
The CEO of Marathon Digital expressed excitement for Bitcoin’s halving and discussed the state of Bitcoin mining and Marathon’s growth strategy in an interview with Bloomberg Crypto. Marathon Digital is a prominent player in the Bitcoin mining industry, and the CEO’s positive outlook on the upcoming halving indicates confidence in the future of the cryptocurrency market. The interview sheds light on the company’s strategic vision and the evolving landscape of cryptocurrency mining.
Overall, the crackdown on illegal crypto mining operations in Siberia highlights the challenges posed by unauthorized mining activities and electricity theft. The raids on the four data centers in Novosibirsk and other regions demonstrate the authorities’ efforts to enforce regulations and combat illicit activities in the cryptocurrency industry. The ongoing discussions surrounding taxation, regulation, and the future of the mining industry reflect the complexities and evolving nature of the digital economy in Russia. It remains to be seen how the government will navigate these issues and shape the landscape of cryptocurrency mining in the country.
