A citizen of the federated republic of Dagestan, Russia, was captured for allegedly causing damage to the electrical system. This is an illegal cryptocurrency miner, who would have caused almost $ 500,000 in damages to the state network.
Police proceeded to arrest the 30-year-old on Tuesday. According to the report, the event occurred in the Makhachkala region. There, the citizen built a structure of more than 500 platforms, which were connected to the network.
The person, once installed on the site, proceeded to make the equipment connections. They were directly attached to the high-voltage lines that pass near the place where they established their infrastructure.
Illegal cryptocurrency miner barely enjoyed his business
Importantly, the authorities detected the illegal operator in a very short time. Since May, the subject established his center on the third floor of a non-residential building in the area.
At the scene, the illegal miner began generating cryptocurrencies of various denominations. Digital assets mined at the site include Bitcoin and other altcoins.
The entire complex of connections established by this illegal cryptocurrency miner, according to the authorities, would have cost the State about 34 million rubles, equivalent to $ 494,000 dollars.
Equipment seized in the operation
During the operation, carried out by the police services, numerous teams were seized. The report talks about 518 ASIC miners of unspecified model. According to the images, it would be S9.
In addition to the mining machines, dozens of other equipment and materials were seized. Among these, computers, wiring, spare parts and various types of tools dedicated to the maintenance and installation of these cryptocurrency dispensing devices stand out.
For his part, the illegal cryptocurrency miner will be charged with “cause of property damage due to fraud” and “breach of trust”.
A chain of crimes and arrests
In March, the police captured a group of 10 people in Saint Petersburg. They operated illegally causing losses of $ 200,000 dollars per month in electrical expenses.
The subjects had the mining equipment distributed in various locations. This hindered the authorities’ investigations. The money obtained in cryptocurrencies was traded on a foreign exchange.
In another case, the police arrested a new illegal cryptocurrency miner. It was an official from the post office. The offender would have used the local electricity for six months to mine Bitcoin.
The uncertainty of being a legal or illegal business
Russia occupies one of the first positions in terms of the number of mining farms. However, the status of this business is not precisely known.
Authorities such as the Central Bank of Russia have openly expressed their rejection of these virtual currencies. But, at the same time, they have admitted that there are no plans to ban them.
In summary, the authorities publicly admitted that although cryptocurrencies do not benefit the ruble, it is impossible for them to ban their use. What is possible is to punish illegal acts of fraud against the electricity system, as has been done, especially this year 2020.