Russian Creates Network of Nine Secret Crypto Farms

cryptonews.ruPublished on 2026-07-31Last updated on 2026-07-31

Abstract

Russian authorities discovered a network of nine secret cryptocurrency mining farms in Nizhny Novgorod. One farm was found in a garage near the railway station "Pochinki," operating without a contract with the power supply company and with tampered meters to artificially reduce electricity consumption. Similar illegal setups were found at eight other locations, including a car wash, residential building basements, and a buried container on private land. All were connected to the grid illegally with meter interference. Police seized 120 mining devices, four mobile phones, a laptop, and bank cards during a search. The suspect faces criminal charges for property damage through deception and is under a travel restriction. While mining is not banned in the Nizhny Novgorod region, this case involved electricity theft. Previously, in Irkutsk Oblast, police found an illegal crypto farm in a forest belt near a village after a tip from the energy company.

One of the crypto farms was discovered by security forces in a garage on the territory of an unnamed transport company near the railway station "Pochinki." The farm operated without a contract with the energy supply company, and tampering with the meter's operation allowed "artificially understating the volume of consumed electricity," the police report.

A similar scheme was in operation at eight other sites in Nizhny Novgorod: mining equipment was placed at a car wash, in the basements of residential buildings, and also in a container buried in the ground on a private plot of land. In all cases, connection to the power grids was illegal, involving "tampering with the meters."

The police claim that during a search of the detainee, 120 mining devices, four mobile phones, a laptop, and bank cards were seized. A criminal case has been initiated against the suspect under Part 2 of Article 165 of the Criminal Code of the Russian Federation ("Infliction of property damage by deception or abuse of trust"). Pending trial, the Russian must remain under a written undertaking not to leave.

Mining is not prohibited in Nizhny Novgorod and the Nizhny Novgorod region. The region is not included in the list of subjects of the Russian Federation where restrictions on cryptocurrency mining are in effect.

Earlier, in the Irkutsk region, police officers discovered an illegal crypto farm in a forest belt near the village of Stolbova. The inspection began after representatives of the energy supply company informed law enforcement agencies of a suspicious connection to the power grids.

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Related Questions

QWhere was one of the secret crypto farms discovered by law enforcement?

AIt was discovered in a garage on the territory of an unnamed transport company near the 'Pochinki' railway station.

QHow did the miner illegitimately reduce electricity consumption at the discovered farm?

ABy interfering with the operation of the electricity meter to artificially lower the recorded volume of consumed electricity.

QWhat items were seized from the suspect during the search?

A120 mining devices, four mobile phones, a laptop, and bank cards were seized.

QUnder which article of the Russian Criminal Code was the case initiated against the suspect?

AThe case was initiated under Part 2 of Article 165 of the Russian Criminal Code ('Causing property damage by deception or breach of trust').

QAccording to the article, is cryptocurrency mining prohibited in the Nizhny Novgorod region?

ANo, cryptocurrency mining is not prohibited in the Nizhny Novgorod region, as it is not included in the list of Russian regions with restrictions on crypto mining.

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