Cryptocurrency

Ukraine Security Service shuts down illegal crypto farm, confiscates mining rigs

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A crypto farm operating illegally was uncovered and eventually shut down by the Security Service of Ukraine (SBU).

According to Forklog, the facility was located north of the country, particularly in Chernihiv, Oblast and the unidentified owners connected it to an electrical transformer substation of the region’s power network.

Inside the facility, there were 150 ASICs that were running on stolen electricity. These were seized by SBU agents along with other auxiliary equipment used in mining cryptocurrencies.

Installed in rented warehouses, the mining rigs were estimated to have burned around 3 million Ukrainian hryvnias ($110,000) in just two months.

A potential huge problem aborted

The seizure of the mining machines aborted what could have turned out to be a nightmare in Ukraine as the substation to which they were connected to provides power to the ambulance service in the city’s water utility company, the Nizhyn.

The SBU also said part of the region could have been left without electricity as continued operation of the mining farm might have triggered emergencies and supply interruptions.

The still-to-be-identified owners of the mining facility were pretty sleek in hiding the theft from the local power authority as they installed specialized equipment that lowered meter readings. Meanwhile, investigation still continues in an attempt to identify the operators and bring them to justice.

Security Service working double time

The SBU recently has become active with regards to the crypto space. In fact, this is not their first operation this year that targeted crypto mining operations.

Just last June, the SBU found a crypto farm illegally connected to the power grid in Dnipropetrovsk Oblast and 350 mining rigs, which consumed over $70,000 worth of unpaid electricity, were confiscated.

 

Image courtesy of Cointelegraph News/YouTube

Jet Encila

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Jet Encila

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