• Authorities in the Russian region of Irkutsk have filed 1,000 lawsuits against people minting coins in their homes.
• Courts have ordered the defendants to compensate power distributors for losses and damages.
• Power distributors are prosecuting illegal miners by identifying increased loads on the grid at substations.
1,000 Lawsuits Filed Against Crypto Miners in Irkutsk
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.
Illegal Mining Detected Through Increased Loads on Grid
Power distributors in the Siberian Irkutsk Oblast have filed lawsuit number 1,000 against consumers illegally mining cryptocurrency in residential areas. In 600 of these cases, 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, with one man having burned almost 80,000 kWh per month over a year period – exceeding that consumed by other 15 homes on his street.
Clampdown on Home Crypto Mining
In recent years authorities have been trying to clamp down on home crypto mining as it has become a popular source of additional income for a growing number of people. Officials believe that regulating mining and introducing differentiated rates depending on consumption can help solve this issue. Power distribution companies are now prosecuting illegal miners by identifying increased loads on the grid at substations using subsidized electricity rates for domestic purposes which can be as low as $0.01 per kWh in rural districts..
Crypto Mining Bill Under Review By Parliament
Crypto mining is yet to be regulated in Russia with a dedicated bill under review by parliament however such activities are not explicitly prohibited at this time . Deputy Minister Pavel Snikkars was quoted saying that electricity distribution companies have started to identify improvised mining farms and prosecute illegal miners accordingly .
It remains unclear how regulation will affect crypto mining operations but authorities are actively looking into ways to combat “gray” miners utilizing subsidized electricity resources while also providing clarity regarding legal operation within Russia’s borders .