Cryptomining farm found in Russia’s oldest prison


Russian law enforcement authorities are investigating cryptocurrency mining operations in Butyrka, Russia’s oldest prison. The deputy director is charged with stealing electricity to issue digital coins with the help of an unidentified accomplice.

Deputy minister suspected of mining cryptocurrency in Moscow prison

A senior representative of the officials of the Butyrskaya prison in the Tverskoy district of central Moscow is being investigated for setting up a cryptocurrency mining farm. also known as ButyrkaThis is the oldest prison in Russia built in the distant 1771.

The coinage hardware was found on the premises of a psychiatric clinic operated by the prison’s federal prison. One of the deputies of the Russian Federal Commission of Investigation is currently investigating a possible abuse of power, the economic daily Kommersant reported this week.

Investigators have so far confirmed the installation of the mining rig in November 2021 with accomplices whose management has not yet been identified. The rig was extracting cryptocurrency until February of this year.

During that time, the machine consumed nearly 8,400 kW of electricity, paid by the government, with a total cost of over 62,000 rubles (close to $1,000). In response, the deputy director was charged with “acts that clearly infringe upon the legally protected interests of society or the state beyond his/her authority.”

Subsidized and sometimes stealing electricity, cryptocurrency mining has become an attractive additional source of income for many Russians. Regions such as Krasnoyarsk Krai and Irkutsk Oblast have historically maintained low electricity rates for the population and public institutions and have become hotspots of unauthorized activity.

Illegal miners have been accused of frequent breakdowns and outages, especially in residential areas where the power grid cannot handle the heavy load. To address this phenomenon, a Russian antitrust agency recently proposed introducing higher electricity rates for home cryptocurrency miners.

There has been a recent raid on underground mining operations across the country, with law enforcement confiscating more than 1,500 mining rigs from two illegal cryptocurrency farms in Dagestan. One of them was the minting of cryptocurrencies at the pumping stations of the waterworks of the Russian Republic.

tags in this story

Butyrka, Butyrskaya Jail, Crypto, Crypto Farm, Crypto Miner, Crypto Mining, Crypto Currency, Cryptocurrency, Illegal, Miner, Mining, Moscow, Prison, Prison, Russia, Russian, Warden

What do you think will happen to a Russian prison official charged with illegal cryptocurrency mining? Let us know in the comments section below.

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Lubomir Tasev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quotes. In addition to cryptocurrencies, blockchain, and fintech, he said, international politics and economics are two other sources of inspiration.

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