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Russian Power Grid Suffers $14M Loss Due to Illegal Crypto Mining: Local Report

russian power grid rosseti group

In recent developments, the Rosseti group [the company, which manages electricity distribution in Russia] reported significant losses due to illegal connections by “black” miners, totaling over 1.3 billion rubles in 2024. 

Per Tass media local coverage, the most substantial losses were incurred by Rosseti North Caucasus, which faced damages exceeding 600 million rubles, followed by Rosseti Novosibirsk with 400 million rubles and Rosseti Center and Volga Region at 120 million rubles.

Source: Tass

Criminal Cases and Law Enforcement Response

According to the report, Rosseti authorities noted that they have successfully suppressed 130 cases of illegal connections and unaccounted electricity consumption. 

The materials related to these cases have been forwarded to law enforcement agencies, leading to the initiation of more than 40 criminal cases under the Russian Criminal Code, which could result in imprisonment for offenders.

The company highlighted that mining operations often lead to network overloads, contributing to low voltage issues that can damage electrical equipment and appliances. 

For context, a notable incident occurred in Chapaevskoye, where authorities discovered nearly 200 mining systems consuming over 12,000 kWh of electricity. This investigation was prompted by a sudden spike in power usage and complaints from local residents.

Unconventional Mining Locations

Rosseti’s findings revealed that these illegal mining farms are often situated in unconventional locations, ranging from containers on rented land near Nizhny Novgorod to underground parking garages in Makhachkala. 

One of the largest operations was uncovered in Novosibirsk, where over 3,200 mining devices belonging to a single operator were identified. This operation was estimated to have caused damages worth approximately 197 million rubles. The suspect was detained as a preventive measure during the investigation.

The ongoing issue of illegal mining poses challenges not only for Rosseti but also for the broader electrical infrastructure in Russia. As the company continues its efforts to combat these illegal activities, it emphasizes the importance of collaboration with law enforcement to ensure accountability and protect the integrity of the energy supply.