Russian power company reports $14 million in damages from illegal crypto mining last year

Russian power grid company Rosseti Group said it saw more than 1.3 billion Russian rubles ($14.2 million) worth of damage from “black” crypto mining networks in 2024.

According to the report from state-owned news agency TASS, damages were seen in Rosseti’s networks of power grids across the country, with the largest coming from its North Caucasus grid of over 600 million rubles. 

Rosseti’s Novosibirsk grid saw 400 million rubles worth of damages, and its Center and Volga region spotted losses equivalent to 120 million rubles, the TASS report said. 

According to the power company, the largest single recorded case of illegal crypto mining was discovered in Novosibirsk, where one owner operated around 3,200 mining devices that stole electricity on an “industrial scale” — causing losses estimated at 197 million rubles ($2.2 million).

Mining farms in general create power congestion resulting in low voltage that can damage other electrical equipment and household appliances, the company said.

The Rosseti Group said 130 cases of unauthorized connections and electricity theft have been stopped, and over 40 cases are being reviewed under Russia’s criminal law with the potential for punishment with prison sentences. 

Last November, Russian authorities placed seasonal bans on crypto mining activities in various regions, including North Caucasus and the Zabaikalsky region in Siberia. Mining is prohibited in some regions annually from Nov. 15 to March 15, through 2031.

Earlier this month, the country's Ministry of Energy announced plans for a mandatory registry of cryptocurrency mining equipment to better track domestic mining activities.