Law enforcement officers have uncovered a psychiatric clinic at Russia’s oldest prison that was secretly converted into a bitcoin mining farm.
A deputy warden and his accomplices are under investigation for their suspected role in constructing the crypto farm after being accused of stealing electricity to produce digital currencies.
The Butyrskaya prison in the Tverskoy District of central Moscow is one of the oldest prisons in Russia, dating back to the 17th century. The prison was said to be constructed around 1771.
Clandestine Bitcoin Mining Operation
Investigators have discovered that the mining equipment was installed by the warden and his accomplices in November of last year. Throughout January and February of this year, the mining rigs mined cryptocurrency.
A data center at sanctioned Russian bitcoin miner Bitriver (Alexander RyuminTASS via Getty Images)
Suggested Reading | Crypto Disaster: Ethereum Co-Founder Vitalik Buterin Claims He’s Not A Billionaire Anymore
During that time period, the hardware utilized nearly 8,400 kilowatts of government-paid electricity at a total cost of more than 62,000 rubles (nearly $1,000).
The jail officer is therefore accused of “obviously exceeding his authority and thereby gravely harming the legally protected interests of society or the state.”
A week prior, operatives of the Russian Federation and the Russian republic of Dagestan discovered a massive cryptocurrency mining plant in Makhachkala, the capital of the republic.
Crypto Miners Are Drawn To ‘Bitcoin-Friendly’ Russia
According to the Tass news agency, authorities confiscated 1,476 equipment used to mine bitcoin and other cryptocurrencies.
Cryptocurrency miners are attracted to Russia because of its subsidies and rare occurrences of electricity theft. Regions such as Irkutsk Oblast and Krasnoyarsk Krai, which have enjoyed historically low electricity rates for residents…
Law enforcement officers have uncovered a psychiatric clinic at Russia’s oldest prison that was secretly converted into a bitcoin mining farm.
A deputy warden and his accomplices are under investigation for their suspected role in constructing the crypto farm after being accused of stealing electricity to produce digital currencies.
The Butyrskaya prison in the Tverskoy District of central Moscow is one of the oldest prisons in Russia, dating back to the 17th century. The prison was said to be constructed around 1771.
Clandestine Bitcoin Mining Operation
Investigators have discovered that the mining equipment was installed by the warden and his accomplices in November of last year. Throughout January and February of this year, the mining rigs mined cryptocurrency.
A data center at sanctioned Russian bitcoin miner Bitriver (Alexander RyuminTASS via Getty Images)
Suggested Reading | Crypto Disaster: Ethereum Co-Founder Vitalik Buterin Claims He’s Not A Billionaire Anymore
During that time period, the hardware utilized nearly 8,400 kilowatts of government-paid electricity at a total cost of more than 62,000 rubles (nearly $1,000).
The jail officer is therefore accused of “obviously exceeding his authority and thereby gravely harming the legally protected interests of society or the state.”
A week prior, operatives of the Russian Federation and the Russian republic of Dagestan discovered a massive cryptocurrency mining plant in Makhachkala, the capital of the republic.
Crypto Miners Are Drawn To ‘Bitcoin-Friendly’ Russia
According to the Tass news agency, authorities confiscated 1,476 equipment used to mine bitcoin and other cryptocurrencies.
Cryptocurrency miners are attracted to Russia because of its subsidies and rare occurrences of electricity theft. Regions such as Irkutsk Oblast and Krasnoyarsk Krai, which have enjoyed historically low electricity rates for residents…