The former Russian electric grid executive lost about 7 million (approximately $88,570) in Bitcoin after law enforcement agents seized a stash.
According to a press release from the Amur Oblast investigation committee, the man responsible for the technical connectivity services of the Far East Distribution Company used his internal knowledge to tap the grid in his own home to perform mining rigs.
He is said to have bypassed the measuring device in 2024 and stole more than 3.5 million (approximately $44,334) of electricity to mine around 0.8414 BTC.
The operation became clear when officials of Russia’s major federal investigative agencies stormed his property and ruled his digital wallet, in collaboration with federal security services.
Details of the attack
Based on reports from the Amur branch of the Far East Distribution Company, investigators tracked abnormal power usage at the residences of former executives.
They say he had illegal connections with the employer’s grid facilities and hid the extra load from the meter. When the agents moved, they found multiple mining rigs installed in the buildings of his home. These machines already produced around 0.8414 BTC, rated at around 7 million at the time of the attack.
Electric theft and mining
The man used the DRSC distribution network without permission, according to investigators. He rerouted the power lines and tricked the meter into avoiding regular billing. Over time, this has reached over 3.5 million stolen electricity bills.
With that free power he was able to mine Bitcoin in spaces that looked like other apartments. The press release pointed out that he uses his role to approve false connections for others and skims the electricity for himself.
In addition to crypto mining, officers discovered that he had taken bes from a local business owner.
Crypto mining requires a lot of energy, and thousands of specialized computers to run almost round the clock. Image: Christinne Muschi/Alamy
Legal hurdles and changes
Because cryptocurrencies do not have a clear legal status, it is difficult to mine or hold Bitcoin in Russia. Based on the report, the case moved forward as the draft law was made public to praise the draft law, which was published in April, treat crypto assets as intangible property in criminal cases.
Once that bill becomes law, courts can more easily order the seizing of Bitcoin and other digital tokens. Until then, investigators were seen when they grabbed $8.2 million worth of codes from Hydra Darknet operators and seized 1,032 BTC (approximately $88.5 million at today’s rate) to confiscate the codes.
Russia’s broader crackdown
The arrest is just part of Russia’s broad efforts to crack down on illegal cryptocurrency activities. Over the past year, Russian authorities have been chasing after darknet markets, insider traders hiding behind crypto trading, and hacking to steal electricity for mining.
Based on the report, federal agencies believe tapping the grid for free power will be a common trick among local miners, especially in remote areas where surveillance is weak.
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