Rosseti Group, Russia’s main power grid company, has reported significant financial losses due to illegal crypto mining. The company lost over 1.3 billion rubles due to unauthorized electricity use across various regions.
Details of the Illicit Crypto Mining Operations
The North Caucasus region suffered the biggest financial loss, with damages exceeding 600 million rubles. This area is known for illegal crypto mining due to low electricity costs and the rising demand for mining power. In Siberia, damages reached over 400 million rubles, while the Center and Volga regions saw losses of around 120 million rubles. These figures indicate the widespread nature of illegal mining activities across the country.
Russia’s Effort Towards Regulation
Earlier this month, the Russian government tightened its grip on the crypto-mining sector. The Ministry of Energy announced plans to introduce a nationwide registry for mining equipment, preventing miners from operating without registering their hardware. This effort aims to effectively control domestic mining operations and manage the country’s energy resources.
Malaysia's Crackdown on Illegal Mining
Russia's actions follow Malaysia's efforts to combat unregulated mining activities. Last year, Akmal Nasrullah Modh Nasir, Deputy Minister for Energy Transition and Water Transformation, revealed that from 2018 to 2023, Malaysia lost $723 million worth of electricity due to illegal mining.
The issue of illegal crypto mining leads to significant financial losses and stresses the power system. Addressing this requires coordinated efforts between energy companies, law enforcement, and regulators.
