Russian Hides Crypto Mining Farm in Outbuilding Near House

cryptonews.ruPublished on 2026-08-26Last updated on 2026-08-26

Abstract

A 53-year-old resident of the Predgorny District in Stavropol Krai, Russia, hid cryptocurrency mining equipment in an outbuilding on his property and exchanged the mined cryptocurrency for rubles, according to materials from a criminal case. Investigators state the man purchased a special device online to connect his equipment while bypassing the electricity meter. The local power grid company estimates the damages from three years of unauthorized consumption at 1 million rubles. Criminal charges have been filed under the article for "causing property damage by deceit," which carries a penalty of up to two years in prison and an 80,000-ruble fine. Stavropol Krai is not among the Russian regions where cryptocurrency mining is prohibited. The ban is in effect in neighboring North Caucasian republics like Dagestan and Chechnya, as well as in Moscow, the Moscow region, and parts of several other regions. This case follows a similar one in Perm, where a mining farm owner faces charges after an inspection initiated by power engineers. In that instance, "Rosseti Ural" estimated damages from illegal electricity consumption at over 6 million rubles.

A 53-year-old resident of the Predgorny District of the region placed mining equipment in an outbuilding in the yard of his house, and exchanged the mined cryptocurrency for rubles, according to the materials of the initiated case.

The special device for connecting equipment bypassing the meter was purchased by the Stavropol resident on an classifieds website, investigators say. Over three years, the network company estimated its damage at 1 million rubles.

A criminal case has been initiated against the owner of the crypto farm under the article on "causing property damage by deception" (Article 165 of the Criminal Code of the Russian Federation, up to two years in a colony and a fine of up to 80,000 rubles).

Stavropol Krai is not included in the list of Russian regions where a ban on mining is in effect. The ban is in effect in neighboring Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya. As well as in Moscow and the Moscow Region, in certain territories of Buryatia, the Trans-Baikal Territory, the Irkutsk and Kursk regions.

Previously in Perm, a criminal case was initiated against the owner of a mining farm after an inspection conducted on the initiative of energy companies. According to estimates by "Rosseti Ural", illegal electricity consumption caused damage to the grid company of more than 6 million rubles.

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Related Questions

QWhat did the 53-year-old resident of the Predgorny District do to facilitate his cryptocurrency mining?

AHe installed equipment for mining cryptocurrency in an outbuilding in his yard and used a special device, purchased on an online classifieds site, to connect the equipment bypassing the electricity meter.

QWhat is the estimated financial damage to the utility company according to the investigation?

AThe network company estimated its damages at 1 million rubles over three years.

QUnder which article of the Russian Criminal Code was the criminal case against the crypto-farm owner initiated?

AThe criminal case was initiated under Article 165 of the Russian Criminal Code ('Causing property damage by deception'), which carries a penalty of up to two years in prison or a fine of up to 80,000 rubles.

QIs Stavropol Krai among the Russian regions where cryptocurrency mining is banned?

ANo, Stavropol Krai is not on the list of Russian regions with a ban on cryptocurrency mining. The ban is in effect in neighboring republics such as Dagestan, Ingushetia, and Chechnya, as well as Moscow, Moscow Oblast, and some other specified areas.

QWhat was the outcome of a similar case involving a mining farm owner in Perm, as mentioned in the article?

AIn Perm, a criminal case was initiated against a mining farm owner after an inspection prompted by power engineers. According to 'Rosseti Ural', the illegal electricity consumption caused damages exceeding 6 million rubles to the network company.

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