What to Know:
- Russian authorities detained seven employees of the Rosseti Moscow Region power grid for allegedly assisting illegal cryptocurrency mining operations in and around Moscow.
- Investigators estimate the scheme caused around 10 million rubles in losses by manipulating electricity meter readings and evading inspections.
- The case highlights rising enforcement pressure as Russia’s crypto mining sector expands despite regional bans.
Russia has detained seven employees of the Rosseti Moscow Region power grid on suspicion of assisting illegal cryptocurrency mining operations in and around Moscow. The suspects reportedly held roles across different levels of the organization, from field electricians to senior engineering staff, according to information released by the Russian Ministry of Internal Affairs.
Russia Detains Seven Individuals Over Illegal Crypto Mining
The investigators say that the group used electricity data manipulation and regulatory obfuscation mechanisms to provide paid assistance to unregistered crypto mining operators. Roughly 10 million rubles in economic damage to the scheme is estimated based on unpaid electricity consumption and connected strain on energy infrastructure.
The Rosseti employees adjusted meter readings to underestimate real electricity consumption, officials said. This enabled mining companies to operate power-heavy machinery at a fraction of the true cost. Some employees also tipped operators off before scheduled inspections, interfered with monitoring procedures, and ensured uninterrupted power supply despite irregular consumption patterns, the investigation said.
The Interior Ministry said that two large illegal crypto data centers were operating in the town of Chekhov since 2024. Both facilities were located on private land and consumed large volumes of electricity to support continuous mining activity. Because electricity usage data had been adjusted in advance, routine inspections did not detect violations for an extended period.
According to authorities, having energy sector insiders involved played an important role in hiding the operations. These suspects, who controlled access to consumption data and inspection schedules, apparently allowed the mining sites to operate for years unregulated, the authorities said. The case is playing out within a context of rapid growth in Russia’s cryptocurrency mining sector. Mining activity expanded sharply after Moscow legalized the industry in 2024, formally recognizing it as a business activity subject to taxation.
Industry insiders say the change has lured new investment and stimulated construction on a grand scale. The same is not the case for regulators, who increasingly say illegal mining is a driver of growth as well. Emerging data compiled through artificial intelligence tools show that the scale of mining activity is much larger than previously estimated. Even now Russia has almost 196,900 crypto farms in the country, a 44 percent surge from a year earlier, despite regional bans in energy-starved places. The numbers are provided by EnergyTool, a monitoring system by telecoms company MTS to identify mining sites by studying real-time electricity use.
The platform analyzes data from automated metering systems and flags anomalies that indicate unauthorized grid connections, meter tampering, or unusually high and sustained power loads. MTS has said the system has been in use for several years and received a patent earlier this year. Business outlets RBC and Kommersant reported that the tool shows a sharp acceleration in new mining sites during 2025. By contrast, the total stood at about 136,600 at the end of 2024, representing only modest annual growth at the time.
Regional data highlights stark differences across the country. Irkutsk and Novosibirsk in Siberia, along with the Republic of Bashkortostan, lead in newly identified crypto farms. Irkutsk has long attracted miners due to low electricity tariffs, though the heavy concentration of mining operations prompted authorities to impose a permanent ban in the southern part of the region. More than ten regions have now restricted mining activity until 2031.
MTS data also indicates that Khakassia has overtaken Irkutsk as the most profitable region for mining, followed by Tyumen and Murmansk. At the other end of the spectrum, relatively few new facilities were detected in regions such as Volgograd, Ivanovo, Sverdlovsk, and parts of the Central Black Earth area.
Industry representatives remain divided over the reasons behind the surge. Sergey Bezdelov, head of the Industrial Mining Association, said legalization opened the door for institutional investors, accelerating expansion.
He noted that some of the increase is due to mining operations that have arisen from the shadow economy (although unregistered activity remains hard to quantify). Official estimates say that only about 30 percent of miners have registered with the Federal Tax Service. More stringent measures are under consideration, including criminal penalties for illegal miners, and amnesty programs for operators who are willing to formalize their status.
Smart meters and telecom data for monitoring suspicious activity are increasingly being enforced. Meanwhile, Kremlin and central bank officials have made public recognition of the sector’s growing role in an economy constrained by international sanctions. The balance between legal growth and illicit activity is therefore uncertain for now, given the emergence of instances such as the Rosseti investigation, as regulated infrastructure overlaps with unauthorized crypto mining.
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