The deputy warden of Russia’s Butyrskaya jail in downtown Moscow is reportedly under investigation. This is for allegedly establishing an illegal crypto mining farm on the premises.
The operation had not been ongoing for long, according to reports. The gear was first installed in November of last year, at the height of Bitcoin’s surge, and remained functioning until February, when the Bitcoin price settled at around $40,000.
Russian warden accused of setting up illegal crypto mining farm
The Moscow prison is still standing since 1771 and is still operational today. The mining operation was reportedly operating in the country’s psychiatric facility. Which the Federal Penitentiary Service established.
According to reports, the deputy warden is under probe for this reason. His collaborators in this operation, however, have no identifications yet.
According to the information available, the operation did not last long or require a lot of electricity. However, crypto mining has become a popular source of income in Russia, particularly in locations where power is subsidized.
The machines consumed approximately 8000 electric kW. This costs around 62,000 rubles ($1,000).
Wreaking havoc
Following reports of grid failures and blackouts, Russian law enforcement officials are reportedly undertaking raids around the country to recover equipment from underground mining farms.
The number of recovered rigs is reportedly over 1,500 so far. One farm was allegedly operating at the national water supply utility’s pumping station.
This is not just a Russian problem. Illegal miners have been discovered stealing electricity in Malaysia, Kazakhstan, and Canada. This is likely to continue until the world works out a cost-effective and long-term means to mine Bitcoin. However, utilizing a prison facility to mine Bitcoin is new.