Russian IT specialist arrested for crypto mining

An IT specialist in the Russian Republic of Altai has been arrested on suspicion of stealing electricity from a Covid-19 hospital to mine cryptocurrency.

He is accused of stealing $7,000 worth of power. Authorities investigated the man a year after he first installed the software enabling him to tap into the power supply in February 2021.

The man, who worked as chief information security specialist for the hospital, used his position to gain access to the hardware he needed to conduct cryptocurrency mining operations.

Authorities raided his home and discovered cryptocurrency equipment that he used for his mining operations.

He was apprehended by the Federal Security Service (FSB) who confirmed his arrest along with the Ministry of Internal Affairs.

It took law enforcement a year to discover the issue, mostly because the man was using fairly small amounts of electricity to conduct his operations.

Russia has no explicit laws against cryptocurrency mining but stealing electricity to power cryptocurrency farms is a crime.

Meanwhile, the Russian Federation has been trying to establish clear-cut regulation regarding cryptocurrencies. The country has been buffeted by Western-led sanctions over its invasion of Ukraine, a democratic neighbor.

This has prompted an exodus of companies, including cryptocurrency heavyweights who have decided against operating in the country any longer.

Siberia and other regions of Russia have been particularly apt places to run cryptocurrency mining owing to cheap energy prices and cold temperatures. Despite this, companies are packing up and leaving.

In the meantime, cryptocurrencies remain a recreational option at websites such as 1xBit, FortuneJack and Bitcasino.io.

Source

Updated: 08/23/2022 — 20:00