Rosseti reports $14.2M loss due to illegal crypto mining in Russia

Rosseti Group, Russia's state-owned power grid operator, has reported losses of over 1.3 billion rubles (approximately $14.2 million) in 2024 due to unauthorised cryptocurrency mining operations.

These illegal operations, often referred to as "black" mining farms, connect directly to Rosseti's power network without authorisation, resulting in electricity theft and significant strain on the company's resources and infrastructure.

The most affected regions include the North Caucasus, Novosibirsk, and the Center and Volga areas.

The North Caucasus grid alone accounted for 600 million rubles ($6.6 million) in losses.

The Novosibirsk grid saw 400 million rubles in damages, while the Center and Volga regions experienced losses of 120 million rubles.

One of the largest illegal mining operations was discovered in Novosibirsk, where authorities confiscated 3,200 mining devices.

This single operation resulted in a financial loss of 197 million rubles ($2.2 million).

The individual responsible was detained, highlighting the legal repercussions of such activities.

Rosseti has uncovered 130 cases of unauthorised grid connections linked to crypto mining, leading to over 40 criminal cases.

Those involved could face imprisonment under Russia’s criminal code.

Rosseti warns that unauthorised electricity use can overload the grid, lower voltage levels, and damage electrical equipment, disrupting power supply for legitimate customers.

To combat illegal mining, Russian authorities have imposed seasonal bans on crypto mining activities in various regions.

The company has also called for stricter regulatory oversight and more robust enforcement measures to deter illegal activities.

Rosseti is exploring legal Bitcoin (CRYPTO:BTC) mining projects in areas with excess electricity to improve efficiency and boost revenue.