Rosseti, a Russian energy giant, faces $ 14.2 million due to illegal encryption mining

Rosseti, a Russian energy provider, gained significant financial popularity in 2024 due to illegal encryption mining, and the loss is about 1.3 billion rubles ($ 14.2 million).

On February 18, local media outlets said Rosseti said that these losses originated from unauthorized electricity consumption in various regions. North Caucasus grid accounted for 600 million rubles ($ 6.6 million).

Additional losses were recorded in a total of 550 million rubles ($ 5.7 million) in Novosibirsk, Center and Volga.

The authorities have found one of the biggest illegal mining work in Novosibirsk, where 3,200 mining devices have been seized. This single operation resulted in financial losses of 1.9 million rubles ($ 2.2 million).

Overall, Rosseti is known to have found 130 unauthorized grid connections connected to encryption mining. These cases were transferred to the law enforcement agency, resulting in more than 40 crimes. Related people can face legal results in accordance with the Russian criminal law.

On the other hand, the company warned of the dangers of illegal mining, stating that unauthorized electricity use can lower overload and voltage levels in the grid and damage electrical equipment. This confusion affects both the company’s infrastructure and the general user.

The energy company recently said that it is exploring legitimate Bitcoin mining projects to optimize energy use.

Rosseti aims to use surplus energy to strengthen its financial status while solving the problem of unauthorized mining.

Russian Bitcoin Mining Ecosystem

The crackdown on unauthorized mining in certain areas occurs as the demand for encryption mining equipment in Russia increases.

In 2024, the demand for industrial mining equipment is reported to be tripled compared to the previous year. This increase may be related to Russia’s recent regulatory framework, which provides more clearness to the mining industry and can be considered taxable real estate.

But the authorities are strengthening their grip on unauthorized operation. Regulatory authorities are trying to trace illegal miners more effectively while promoting national mining equipment registration.