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Illegal Crypto Mining Discovered in Russia’s Oldest Prison

It was recently revealed that the oldest prison in Russia, which is referred to as Butyrka, has become a site for illegal crypto mining. During the investigation, it was also discovered that a prison warden of high rank had allegedly been stealing electricity from different parts of the prison to further aid the mining of cryptocurrency within the facility. Butyrka has been established for over 250 years. This prison accommodates about 2,000 inmates. It is apparently a very large prison. The police are still looking into the illegal crypto mining that went on in the jail.

This discovery was made when mining equipment was found in the psychiatric clinic that is currently managed by the Federal Penitentiary Service in the prison. reports that there are suspicions from the investigating officers that the crypto mining in the prison must have been ongoing for a very long time. Precisely, since last November.

From the investigation, it was reported that the people involved in the illegal mining activities in the prison may have used about 8,400 KW for a period from November 2021 to about February 2022. The implication of this is that the Russian government had to pay for the electricity that was used in the prison to mine cryptocurrency.

But the reports of the investigation are still not clear when it comes to the warden and the other people who helped them. There is no doubt that crypto mining processes necessitate the consumption of massive amounts of electricity. This affected the regular electricity supply in certain regions like Kazakhstan. Crypto mining has disrupted power supplies in many regions. 

Russia will legalise cryptocurrency mining

However, there are plans underway by the Russian government to legalise crypto mining activities. The purpose is to ensure that power production at the required quantum is carried out without interrupting industrial and commercial activities and the lives of the citizens.

The President of Russia, Vladimir Putin, in his remarks, noted that the country has advantages in the mining of cryptocurrencies. In March, the Deputy Minister of Energy, Evgeny Grabchak, expressed his support for the regulation and legalisation of crypto mining. Grabchak noted that it is imperative to identify the legal mining sites in the country and “manage electricity keeping crypto mining requirements in mind, especially at the regional levels.”