Crypto mining: Russia and Ukraine shut down illegal mining centers

Stocks of major Bitcoin mining firms tank as market downturn worsens

TL; DR Breakdown

  • Russia and Ukraine close down illegal crypto mining centers.
  • Activities are affecting Russia’s electricity grid.
  • Ukrainian regulators are shutting down illegal facilities.

Cryptocurrencies are one of the few investments in the financial market where profits are sure no matter how bad the market is at a period. This is because right from the development of Bitcoin in 2009, the asset has proven haters wrong in many ways. For instance, the price of Bitcoin at this present time is different from the price it sold for some years ago. But while the sector provides massive profits, some illicit actors have been soiling the sector’s image. In a recent publication, regulators across Russia and Ukraine have shut down illegal crypto mining rigs across both countries.

Russia’s electricity suffering from the effects of illicit crypto mining

According to the update, most of these mining rigs power their activities with stolen electricity, putting a strain on the power grid in the countries. In a statement by Russian regulators, the investigations showed that some entities were illegally tapping into the power network that Rossetti owned. The statement further buttressed the fact that the perpetrators stole the land from its original owners and used it to set up shop to mine diverse digital assets.

In the detailed statement, the said mining rig has used up electricity worth $7,000 since it started operating in the Moscow Oblast region. Asides from this, regulators have reported two other illegal mining centers in the Dagestan region of Russia. According to the regulators, the site was discovered at the beginning of last month, with the total amount of electricity consumed by the rig estimated to be around $13,000.

Ukrainian regulators are shutting down illegal facilities

Russia is not the only country suffering from illegal mining rigs on its power grid, as Ukraine is also receiving such activities. In an announcement made by the Security Service of Ukraine last week, an illegal crypto mining center has been busted in Kyiv. In the detailed announcement, the regulators mentioned that three residents were charged with installing high-grade miners at a small apartment rented in the town. During their operations, regulators have estimated the total electricity used by the facility to be around $128,000.

In the last few years, Ukraine has cemented its place at the top of the pile when it comes to countries with massive admiration for digital assets. With Ukraine now, one of the few countries touting the adoption of digital assets, legalizing adoption has been in the works for a while now. Although traders can carry out trading activities, the government has not taken any steps to ensure regulation. However, the SBU has been a thorn in the flesh of illegal mining center operations, shutting down a massive number of these centers in the last few months.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

Related News

Hot Stories

Ripple price analysis: XRP turns bearish again after pulling back up to $0.45, what's next?
Portugal unveils capital gains tax on crypto
Ripple price analysis: XRP/USD set to break above the $0.5 resistance
Dogecoin founder says 95% of cryptocurrencies are ''scam and garbage"
Cardano Price Prediction 2022-2030: Is ADA a good investment?

Follow Us

Industry News

MiamiCoin and NewYorkCoin plummet over 85% despite Mayoral endorsements
Cloudflare grants public access to Ethereum and IPFS gateways
Coinbase slows down hiring plans after Q1 losses
Korea's authorities open investigation into TerraUSD collapse
Ukraine war and Bitcoin plunge exposes crypto as no hedge against equities