At Least 1,000 Lawsuits Filed Against Crypto Miners in Russia’s Irkutsk Region
Authorities in the Russian region of Irkutsk have so far filed 1,000 lawsuits against what they call “gray” miners, or people minting coins in their homes. In over half of these cases, courts have ordered the defendants...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
Authorities in the Russian region of Irkutsk have so far filed 1,000 lawsuits against what they call “gray” miners, or people minting coins in their homes. In over half of these cases, courts have ordered the defendants to compensate the operators of the distribution networks.
Hundreds of Crypto Miners Sued in Irkutsk for Extracting Digital Currencies Using Subsidized ElectricityPower distributors in the Siberian Irkutsk Oblast have filed lawsuit number 1,000 against consumers illegally mining cryptocurrency in residential areas. In 600 of these, judges have decided that the so-called “gray” miners should pay a total of more than 260 million rubles ($3.5 million) in compensation for losses and damages.
The most common reason for going to court is an unusually high usage of electricity, the regional news portal Irk.ru reported. Such is the recent case with the owner of a house in the village of Novaya Razvodnaya, whose average monthly power consumption over the course of one year reached almost 80,000 kWh, exceeding the total burned by the other 15 homes on the same street.
The man denied any misconduct, claiming he didn’t mine cryptocurrencies but used heat guns to dry his basement. The Irkutsk Regional Court did not accept his explanation and as a result he will have to pay the local power utility, Irkutskenergosbyt, more than 2 million rubles (approx. $27,000).
The amount should cover the difference between the subsidized electricity rates for domestic purposes, which can be as low as $0.01 per kWh in rural districts, and the much higher tariffs that businesses are required to pay.
In the past couple of years, authorities have been trying to clamp down on home crypto mining in the region, which has become a popular source of additional income for a growing number of people. Officials believe that the regulation of mining in Russia and the introduction of differentiated rates, depending on consumption, will help solve the issue.
Quoting Deputy Ministry of Energy Pavel Snikkars, the Russian press reported in December that electricity distribution companies have started to identify improvised mining farms in residential buildings by the increased loads on the grid at substations and are now prosecuting the illegal miners.
While crypto mining is yet to be regulated in Russia, with a dedicated bill under review in the parliament, such activities are not explicitly prohibited at the moment. Nevertheless, utilities can still prove in courts that these consumers are not using the electricity for domestic needs and request to charge them at commercial rates.
Do you think Russian authorities will continue to crack down on amateur crypto miners? Share your thoughts on the subject in the comments section below.
Why this matters
This mining story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on Bitcoin NewsRelated market context
Tether Wins Mining Industry Support For Its Open Automation Toolkit
Tether is trying to make Bitcoin mining equipment easier to operate as one system. Its October 24 announcement brings 15 industry...
Strive Buys 6,182 Bitcoin For $511 Million, Lines Up $1 Billion ATM To Buy More
Bitcoin Magazine Strive Buys 6,182 Bitcoin For $511 Million, Lines Up $1 Billion ATM To Buy More Strive, Inc. (ASST) acquired 6,18...
Bitcoin ETF Week Stays Positive After Nearly $774 Million In Late Outflows
TL;DR: Farside’s preliminary figures show US Bitcoin funds retaining a $301.2 million weekly inflow despite two days of withdrawal...
Strategy’s Weekly STRC Buyback Climbs to $205 Million While Its Bitcoin Stack Stays Put
Strategy spent $204.9 million repurchasing 2,068,459 shares of its STRC preferred stock between Oct. 19 and Oct. 25 and bought no...
Polymarket US logs record 74 million trades in October
Polymarket's surge highlights the potential for regulated prediction markets to attract mainstream users, but also raises question...
Tom Lee declares ‘crypto bull market is underway’ as Bitmine lifts ETH treasury past six million coins
Bitmine adds 10,452 ETH to reach 6.05 million ETH, about 4.95% of Ethereum's supply. Chairman Tom Lee says the crypto bull market...