Russia’s Novosibirsk is taking action against home crypto miners, as law enforcement officials have arrested a resident of the city. The man is suspected of committing electricity fraud. During a meeting with Governor Andrei Travnikov, Kirill Travin, the Deputy Head of the Novosibirsk Oblast’s branch of the Ministry of Internal Affairs, announced the arrest. Travin revealed that officers raided a property in the Moshkovsky District, where they found six administrative violations. The man was arrested and a criminal case has been launched against him. Travin also mentioned that another potential violation is being investigated. According to Travin, the man managed to earn over $123,000 from his mining activities, although the specific coin he mined was not disclosed. However, local forum posters claim that the man was mining Ethereum (ETH).
A resident of Novosibirsk, who wished to remain anonymous, stated that many people in the city are involved in home-based crypto mining. The resident mentioned hearing strange noises coming from nearby apartments, suggesting that mining operations are taking place. While home-based crypto mining is not illegal in Russia, recent legislation has legalized private mining. However, miners are required to comply with local power providers’ electricity limits. Starting from November 1, regions will have the authority to order miners to shut down their rigs, following the signing of the second crypto mining law by President Vladimir Putin earlier this month. However, the law has left small-scale Russian miners confused, as it contains certain loopholes. The Novosibirsk resident appears to have been arrested for using subsidized electricity to power his mining rigs, although home-based miners typically do not have access to commercial power. Lawmakers intend to address private crypto mining in future legislation.
Power companies in the region have been intensifying their efforts to crack down on crypto miners. Illegal mining operations have been discovered in various locations in Novosibirsk, including near a sewage treatment plant, outside a city refuse dump, in forested areas, and in residential spaces. Similar crackdowns are taking place in other parts of Siberia, such as the Bitcoin mining hub of Irkutsk and the Republic of Buryatia. Some Russian miners in Siberia have resorted to using “mobile crypto mining farms” in vans and cars to avoid detection. In Moscow, plans are being developed to impose taxes on industrial crypto miners, which industry officials believe will contribute hundreds of millions of USD to the Russian Treasury annually.
