Illegal Mining Firms in Russia Stole $6.6M Worth of Electricity- Rosetti

Zain  |  Jun 8, 2020

The illegal mining firms in Russia used methods to tamper with the electricity supply of the region to steal $6.6 million. They illegally built power stations owners would use electric cords and connect to the nearest power station. Remarkably,one of the owners managed to build a power station below the soil, according to Rossetti, the power grid company of the state. This came to their notice when mining firms were not connected to any nearby electricity spot but still consumed power. One other factor that grew them suspicious is the low bill a few of them generated, something you'd not associated, at least with a bitcoin mining firm. Farms and office were used by the owners to steal electricity who were looking for additional income by dodging the payments.

 Most of the illegal mining firms were already well established and have been in the running and were just looking to make a few extra millions. Bitcoin mining requires a tremendous amount of power consumption, ergo higher bill, but that was not found to be the case, alerting Rosetti.

Methods Used by Illegal Mining Firms in Russia

Rossetti reports that they've been analysing the pattern of these crypto mining firms. They believe that tampering to make the bill appear less has been part of the artillery. Putting the bill across the running condition of the illegal mining farms also helped in their cause as the high facilities of the farm far exceeded the billing. The bigger the firm with a heavier workload, the easier it was to spot something fishing regarding power consumption.

The black miners although found multiple means to steal, got greedy it seems as Rosevetti has been to able to identify as many as 35 firms since 2017. A total of $450 million Russian Ruble is a staggering amount by all means but it seems with better identification of such illegal mining firms loaded with black miners, companies such as Rosevetti can tighten the grip on the matter.

Russia has been contemplating about criminalising payments made in bitcoin, and if the reputation worsens given the involvement of bitcoin mining firm in power consumption issues, the consequences could become even more for the cryptocurrency. Russian exchanges are preferred by crypto criminals too, according to CipherTrace.

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