Illegal miners in Irkutsk Oblast owe more than 350 million rubles

Courts in Irkutsk Oblast are hearing 430 cases of electricity theft tied to cryptocurrency mining, totaling around 350 million rubles. This was reported by ТАСС, citing ‘Иркутскэнергосбыт’.

Miners use electricity on industrial scales, yet pay tariffs intended for households.

Energy utilities uncovered crypto farms in private homes, basements of multi-family buildings, the attic of a psychiatric hospital, a school, a cow barn, and a hotel complex.

Over five years, Irkutskenergosbyt has filed 1,491 suits against miners, 855 of which have already been granted by the courts. Under the final rulings, residents of the region must pay more than 360 million rubles for stolen electricity.

In December 2022, Irkutsk energy workers reported that they identify instances of cryptocurrency mining in residential buildings by the volume of energy consumption and changes in load on the grid. These materials are then forwarded to the court for the collection of fines.

According to BitRiver’s calculations, Russia, in the first quarter of 2023, for the first time ranked second in the world by mining capacity deployed — 1 GW.

Meanwhile, the Finance Ministry valued the country’s annual cryptocurrency mining at about $4 billion. Potentially the industry could bring around 20 million rubles per year to the state treasury, the ministry calculated.

A bill regulating the sector has been registered with the State Duma since mid-November 2022. It would oblige individuals and legal entities to report to the tax authorities on mined cryptocurrencies, indicating the address to which they are credited. Its passage is expected in 2024.