It was recently unearthed by Russian authorities that an entire mining hub was being operated inside a psychiatric clinic of Russia’s oldest prison.
Yup, you did read that right. An illegal mining hub was being operated inside Butyrskaya prison in the Tverskoy District of central Moscow since last November 2021. It is believed that the rigs operated till February 2022 and during this time they consumed about 8,400 kilowatts of government-paid electricity which amounts to 62,000 rubles or $1,000 approx,
The law enforcement agency primarily deduced that the deputy warden and some of his subordinates who are yet to be identified were behind the whole illegal operations.
According to the local media, authorities confiscated around 1,476 pieces of mining hardware used for mining Bitcoin and other cryptocurrencies.
Why did they do this in the first place?
Well, the answer is pretty simple. People around the world illegally operate crypto mining hubs to use stolen or subsidized electricity meant for domestic use and not to pay any commercial fees or taxes to increase their profit margins. Russia too is no exception. Hence, these kinds of illegal mining operations are far too common in Russia. However, the Butyrskaya prison was on a whole different level which has sent a shock to the higher-ups.
Furthermore, Russia is considered to be a crypto heaven due to its lenient norms on the crypto market. Hence, more and more miner’s come here from all around the world to set up their expensive mining hubs here and many also come with the sole intention of setting up their rigs here illegally.
All these illegal mining set up throughout the country add an increased burden on the power generating stations which in return causes frequent outages throughout Russia. This issue is the same throughout the world.
The only solution to this issue is stricter vigil and stricter penalties need to be introduced against these miners to deter them from ever having the thought of operating their power-hungry rigs illegally.
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