Authorities in Russia’s Irkutsk region have so far filed 1,000 lawsuits against what they call “grey” miners, or people who mint coins in their homes. In more than half of these cases, the courts have ordered the defendants to indemnify the operators of the distribution networks.
Hundreds of crypto miners sued in Irkutsk for mining digital currencies using subsidized electricity
Power distributors in Siberia Irkutsk Oblast have filed the 1,000th lawsuit against consumers who illegally mine cryptocurrency in residential areas. In 600 of these, judges have decided that so-called “grey” miners must pay a total of more than 260 million rubles ($3.5 million) in compensation for losses and damages.
The most common reason for going to court is unusually high electricity usage, the regional news portal Irk.ru reported. Such is the recent case of the owner of a house in the village of Novaya Razvodnaya, whose average monthly electricity consumption over the course of a year reached almost 80,000 kWh, exceeding the total burned by the other 15 houses on the same street.
The man denied any wrongdoing and claimed that he did not mine cryptocurrency, instead using heat guns to dry out his basement. The Irkutsk Regional Court did not accept his explanation and, as a result, he will have to pay the local power company, Irkutskenergosbyt, more than 2 million rubles (approximately $27,000).
The amount must cover the difference between subsidized electricity rates for household purposes, which can be as low as $0.01 per kWh in rural districts, and the much higher rates that businesses must pay.
In recent years, authorities have been trying to clamp down on domestic crypto mining in the region, which has become a popular source of extra income for a growing number of people. Officials believe that the regulation of mining in Russia and the introduction of differentiated tariffs, depending on consumption, will help solve the problem.
Citing Deputy Energy Minister Pavel Snikkars, the Russian press reported in December that electricity distribution companies began identifying makeshift mining farms in residential buildings due to increased loads on the grid at substations and are now prosecuting illegal miners. .
While crypto mining is yet to be regulated in Russia, with a dedicated bill being reviewed in parliament, such activities are not explicitly prohibited at this time. However, utility companies can still prove in court that these consumers are not using the electricity for household needs and request that they be charged at commercial rates.
Do you think the Russian authorities will continue to crack down on hobbyist crypto miners? Share your thoughts on the subject in the comments section below.
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