Russian Authorities Bust Massive $700K-a-Year Illegal Crypto Mining Farm Hidden as Industrial Plant

Authorities in Russia have dismantled a large-scale illegal crypto mining operation in Nazarovo, a town in Krasnoyarsk Krai, exposing a scheme that reportedly generated over 4.6 million rubles ($58,000) per month.

According to the post on Telegram by the Krasnoyarsk Krai Prosecutor’s Office, the mining farm was operating in plain sight.

It was located on a 30,000-square-meter plot of state-owned land, registered on paper as hosting a non-residential building. In reality, no such structure existed.

The site, surrounded by barbed wire, was packed with mining rigs and power infrastructure. Prosecutors revealed that all equipment had been leased to a third party under the pretense of renting space in the non-existent building.

The company behind the operation had no right to use the land and never obtained necessary permits.

Making matters worse, the miners had connected directly to the town’s power grid without approval. The unauthorized use of electricity raised risks of outages and safety hazards. Local energy officials warned of a high probability of emergency blackouts.

Authorities also cited fire safety violations and a failure to comply with public safety standards. Despite a warning from prosecutors, the company continued operations.

A court has since ordered the immediate suspension of the facility. The prosecutor’s office is monitoring enforcement.

The shutdown adds to growing concerns over illegal crypto mining in Russia, even as the country continues to embrace the sector legally.

In 2023, Russia legalized mining and introduced a taxation framework expected to generate billions of rubles annually.

However, due to power constraints, mining has been restricted in certain Siberian regions, including parts of Krasnoyarsk.

While legal in most of Russia, many operators avoid registration and high electricity costs by tapping directly into the grid or using residential rates. These tactics can damage infrastructure and endanger communities.

Russia's power grid took a $14M hit from illegal #CryptoMining in 2024. Authorities crack down on unauthorized operations, imposing bans & stricter regulations.#Blockchain #Russiahttps://t.co/DDxLOdJIVE

Earlier this year, an energy company employee in Krasnoyarsk was caught accepting bribes to overlook similar illegal mining connections. In that case, miners reportedly stole electricity worth over 9 million rubles ($119,000).

Elsewhere, in Russia’s Republic of Buryatia, a separate operation was discovered just days ago.

During a routine inspection on June 14, authorities found 95 mining rigs hidden inside a KamAZ truck, connected to a 10-kilovolt line meant to power a nearby village.

Illegal #Bitcoin mining has become mobile. In Russia, miners put a farm on the truck…

Specialists in Buryatia found an illegal mining farm in a truck: the intruders unauthorizedly connected to a 10-kilovolt power line.

Inside the truck they found 95 mining devices and a… pic.twitter.com/AsAcI0C7RP

Two individuals fled the scene in an SUV before police arrived.

According to Rosseti Siberia’s Buryatenergo unit, this was the sixth mining-related electricity theft in the region since January. Officials say such operations risk damaging local grids and triggering blackouts.

Crypto mining is banned in most of Buryatia between November 15 and March 15 to conserve power during the winter. Only registered entities in certain districts can operate outside that window.

The crackdown reflects wider federal action. In late 2024, the Russian government prohibited mining during peak energy periods in several regions, including Dagestan, Chechnya, and areas of eastern Ukraine under Russian control.

Since April, a full ban has been in place in Irkutsk, one of Russia’s top mining hubs.

Companies like BitRiver, which operates major data centers in Irkutsk, are heavily affected by the changes. The region hosts some of Russia’s cheapest electricity and has become central to the country’s mining industry.

However, a recent report has surfaced that a sophisticated hacking group has been turning Russian business computers into hidden crypto mining machines while stealing sensitive financial data, according to a new report by Kaspersky.

The group, known as Librarian Ghouls (also called Rare Werewolf or Rezet), has been conducting a dual-purpose attack that installs unauthorized Monero mining software and extracts cryptocurrency wallet credentials and private keys.

The campaign, active through May 2025, has primarily targeted industrial firms and engineering schools across Russia and the CIS region.

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