Russian power company reports ₽1.3b ruble loss from Illegal crypto mining in 2024

Russian power grid operator Rosseti reported losses of over 1.3 billion rubles in 2024 due to illegal crypto mining operations that siphoned electricity through unauthorized connections.

The Russian power grid company Rosseti reported losses exceeding 1.3 billion rubles in 2024 due to illegal connections by unauthorized crypto miners. The highest recorded losses occurred in the North Caucasus, where Rosseti Severny Kavkaz reported more than 600 million rubles in damages. In Novosibirsk, losses amounted to 400 million rubles, while Rosseti Center and Privolzhye registered 120 million rubles in loss.

Rosseti confirmed that 130 cases of unauthorized network connections and unaccounted electricity consumption were identified and shut down. Over 40 criminal cases under the Russian Criminal Code were initiated.

Unregulated crypto mining and its impact on the power grid has been a growing concern for Russia. In response, Russia launched a national registry for crypto miners in Nov. 2024. By requiring miners to submit their information, including wallet addresses, the government aims to bring the industry under official oversight. However, while the registry is intended to prevent illegal energy consumption, miners fear that if their data leaks, they could become targets for international sanctions.

Aside from Russia, unauthorized crypto mining has been straining power grids in Iran, Malaysia, Thailand, and Venezuela in recent years, with authorities across multiple jurisdictions attempting to crack down on the practice.