Illegal Bitcoin Mining Cost Russia $6.6 Million in 3 Years

Illegal cryptocurrency mining facilities in Russia have stolen electricity worth almost 450 million rubles ($6.6 million) over the past three years, according to the state-owned power grid Rosseti.

The figures were first reported by the grid operator on Telegram and revealed the high cost of “black” mining on its business.

According to the company, the estimates came from illegal mining operations, tempered power meters, and underground mining farms.

The electricity distributor pointed out that many existing businesses in Russia run cryptocurrency mining operations in factories, offices, remote houses, and even in farms only to generate an additional source of income.

These businesses do not have any contract with the local power distributors and are using electricity for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term mining without paying for it. Rosseti is now hunting for such illegal operations, yet the losses made over the past few years were staggering.

The company also detailed that many facilities just hook a wire to the nearest power lines, stealing electricity, whereas a few even hide their mining equipment underground in the forests to avoid enforcement crackdowns.

Since 2017, Rosseti has found 35 cases of such illegal cryptocurrency mining facilities across 20 regions of the country.

Can regulations curb illegal mining?

Illegal Crypto Mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term has been a headache for the authorities for years. As the price of Bitcoin surges, many jump into mining the digital currency, and to book more profits often try to bypass the electricity costs.

From South Korea to United States, and from China to Ukraine, almost all the countries have seen large scale illegal Bitcoin mining operations.

Last December, the Chinese authorities seized 7,000 illegal Bitcoin miners in a crackdown. The same month, Russian law enforcement also prosecuted two persons for illegally mining Bitcoins on government computers.