A crypto-miner in Russia has been sentenced to serve two years in prison by the order of a regional court which found the accused stealing electricity for powering his crypto mining farms illegally. Russia is planning to enforce appropriate regulations for mining activities as mining has become a popular source of earning income in the country.
A man of 39 years of age, who is a resident of Komi, Russia has been found stealing electricity from the national grid. The person was accused of operating an illegal crypto mining farm in an underground facility for 5 years. He was stealing the electricity from the national grid which he was utilizing for energizing his underground mining facility. He established a farm in a property that belonged to an industry that he had acquired on lease from the owner. Once he got into the building and installed the necessary infrastructure, he then illegally connected his hardware directly into the transformer nearby.
A complaint was registered against the person for electricity theft and his case was brought before the Syktyvkar City Court. The Prosecution Office argued before the Court that the man accused of electricity theft was stealing electricity for more than two years. The office further apprised the Court that the accused has utilized 1.3 million kWh of electricity illegally whose dues haven’t been paid. According to the estimate of the Prosecution Office, the accused has utilized electricity amounting to US$ 75,000.
During the trial, the person accused admitted that he was involved in stealing the electricity directly from the transformer. After hearing the arguments of the Prosecution and on the basis of admission by the accused, the Court then went on to pass a judgment.
In its ruling, the Syktyvkar City Court immediately ordered 2 years suspended sentence in which the convicted will have two years as probation period. The Court observed that the man convicted was guilty of stealing electricity for two years namely 2015 and 2020.
In the absence of appropriate regulations for crypto mining as well as for crypto trading, mining activities are rapidly growing in Russia. One of the major reasons for this growth is the cheap electricity rate while on the other hand, Russia is an energy-sufficient state. Even in the winter months, there is no lack of electricity and in fact, the Government is selling electricity to neighboring countries.
Because of the cheap electricity and its 24-hrs availability, mining is becoming a household name in Russia. This is so because for Russians mining is a great source of income generation. However, for stopping the public from establishing mining facilities in their residential properties, the Government has taken a strict stance against miners. Soon every miner will be required to obtain permission from the regulators in their localities before they can start their mining activities.