Russian Police Seize Over 3,200 Crypto Mining Rigs in Siberian Raids

Russian police have conducted raids on four large “illegal” data centers in Novosibirsk, Siberia, seizing over 3,200 crypto mining rigs. The Novosibirsk branch of the Russian power provider Rosseti reported that the operators of these mining centers have been charged with criminal offenses. The centers were found to be part of an interconnected “network” operating in different parts of the city, with an estimated theft of $2.1 million worth of electricity from the Novosibirsk grid. Police confiscated nine power transformers along with the mining devices.

Novosibirsk, along with Irkutsk, has become a major hub for Russia’s growing crypto mining industry. However, power providers have raised concerns about the rise in illegal crypto mining, where miners steal electricity through unauthorized connections to the power network. The recent raids mark a continuation of crackdowns on illegal mining operations in Siberia and beyond, with authorities targeting facilities and individuals engaged in power theft for mining activities.

While major firms in Moscow express willingness to cooperate with the government and pay taxes on their income from mining, the fate of the industrial mining industry remains uncertain. Legislative initiatives are expected to be introduced to regulate crypto mining activities, with some delays attributed to bureaucratic processes.