Rosseti Group, Russia’s main power grid company, reported major financial losses from illegal crypto mining in 2024. According to a report , the company lost $14.2 million (over 1.3 billion Russian rubles) due to unauthorized electricity use across its network. These illegal mining operations have stressed the country’s power system and raised energy use and safety worries. Details of the Illicit Crypto Mining Operations The North Caucasus region experienced the biggest financial loss, with Rosseti’s power grid suffering damages of over 600 million rubles. This area is known for illegal crypto mining operations, mainly due to the low cost of electricity and the increasing demand for mining power as cryptocurrency popularity grows. Besides the North Caucasus, other areas have also faced significant losses. In Siberia, the Rosseti Novosibirsk grid reported damages of 400 million rubles. The Center and Volga regions were also affected, losing around 120 million rubles. This shows that illegal crypto-mining activities are widespread across the country. Meanwhile, Rosseti Group’s report highlights the urgent need for stronger rules and better monitoring of electricity use. As Russia faces this challenge, fighting illegal mining operations will clearly require more teamwork between energy companies, law enforcement, and regulators. This collaboration is essential to protecting the country’s power system and reducing economic losses. Russia’s Effort Towards Regulation The Russian government tightened its grip on the crypto-mining sector earlier in the month. Russia’s Ministry of Energy announced plans to introduce a nationwide registry for mining equipment. This new proposal, if enforced, will make it impossible for miners to operate without registering their hardware. The goal is to monitor and track domestic mining operations, especially in areas where mining is banned or closely regulated. Furthermore, the move will help Russia manage its energy resources more efficiently. The new registry law would ensure compliance and make it harder for miners to operate in the shadows. Without proper registration, crypto-mining operations would be deemed illegal. Malaysia Cracks Down on Illegal Crypto Mining Russia’s move follows Malaysia’s effort to combat the risks of unregulated mining activities . Last year, Akmal Nasrullah Modh Nasir, Malaysia’s Deputy Minister for Energy Transition and Water Transformation, revealed that between 2018 and 2023, unlawful crypto-mining activities in the nation had pilfered $723 million worth of electricity. Nasir underlined the negative effects these illicit activities have on Tenaga Nasional Berhad, Malaysia’s state-owned electricity operator, and nearby populations. Usually avoiding registering with the relevant authorities, electricity thieves use several strategies to bypass power meters or direct power straight from the lines, causing financial losses and hazards to the impacted communities. The post Rosseti Group Faces $14M in Damages from Illegal Crypto Mining appeared first on TheCoinrise.com .
