An IT specialist working for a medical institution in Russia’s Altai Republic has been detained on the premises of a COVID-19 hospital for illegally mining cryptocurrency. It mined digital currencies using stolen electricity for almost a year before law enforcement busted its crypto farm.
Altai resident arrested for running underground crypto mining operation
An employee of the Republican Hospital in Gorno-Altaisk, capital of the Altai Republic in southern Siberia, has been arrested for setting up a crypto farm in a medical facility. Russian crypto news outlets Bits.media and RBC Crypto reported that he had been running mining equipment since early last year.
In February 2021, a man working as the Chief Information Security Specialist installed coin mining hardware and connected it to a hospital server, previously used to treat patients with COVID-19, for the Republic’s internal affairs department. The ministry detailed in a press release.
According to a statement from the regional department of the Federal Security Service (FSB), mining equipment on the stolen electricity lasted almost a full year, causing damage in excess of 400,000 rubles (close to $7,000 at current exchange rates).
The law enforcement agency further stated that the IT specialist turned to cryptocurrency mining as he experienced financial difficulties. He quickly realized that he did not have the computing power and energy required at home and decided to set up a mining operation at his workplace.
During a search of the suspect’s house, police and FSB officers seized mining equipment and other computer equipment. The crypto miner, whose identity was not disclosed, could face up to two years in prison for his crimes under the Criminal Code of the Russian Federation.
The matter in Altai is settled amid the growing popularity of crypto mining as an alternative income source for many ordinary Russians. It has become a common practice to find digital coins in basements, garages, dachas and even in government institutions, especially in areas that offer cheap, discounted electricity, including Siberian regions such as Irkutsk.
Cryptocurrency mining is yet to be widely regulated in Russia, whose abundant energy resources and cool climate are sought after by miners. Steps have been taken to increase electricity charges for those who mine with domestic electricity.
In May this year, authorities in Dagestan closed two illegal crypto farms, confiscating more than 1,500 miners. One of them was located at a pumping station of the Water Supply Company of the Russian Republic.
The mining facility was set up there by a resident of the capital Sahachkala, who had colluded with the employees of the water utility. Meanwhile, a crypto mining installation was also discovered in Russia’s oldest Butyrka prison. It was reportedly manned by a deputy warden.
Do you think Russia should regulate industrial scale production of cryptocurrencies as well as domestic mining? Share your thoughts on this topic in the comment section below.
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