Unlawful cryptocurrency mining discovered at Russia’s oldest prison

The Butyrka, Russia’s oldest jail, has emerged as a center for illegal crypto mining activity. A high-ranking jail warden has also been accused of diverting energy from other areas of the facility in order to assist crypto mining within the facility.

Butyrka, which was built in downtown Moscow in 1771, is nearly 250 years old and can accommodate up to 2,000 convicts. For the time being, a police inquiry into crypto mining operations within the jail has been launched.

The mining equipment was discovered inside a mental facility maintained by the Federal Penitentiary Service inside the institution.

According to Bitcoin.com, the investigating police believe that crypto creation from within the prison has been occurring on since November 2021.

Over 8,400 kW of power is reported to have been utilised by persons minting bitcoins within the government facility between November 2021 and February this year. In the grand scheme of things, the Russian government actually paid for the energy that was diverted to support crypto mining operations in the prison.

For the time being, specifics about the warden under investigation and any suspects in the case are unknown.

Crypto mining is notorious for using massive quantities of electricity and interrupting regional power supplies.

Power shortages caused by crypto mining have plagued several locations throughout the world, including China, Kazakhstan, and Georgia’s Svaneti town.

Russia, on the other hand, is attempting to legalize cryptocurrency mining in order to provide adequate energy production without affecting the lifestyles and economic operations of its inhabitants.

Russian President Vladimir Putin stated in January of this year that the country had advantages in cryptocurrency mining.

During the first national meeting of legal crypto miners in Russia’s Irkutsk area in March, Russian Deputy Minister of Energy Evgeny Grabchak also advocated for ‘eliminating legal vacuums’ and regulating crypto mining.

Grabchak has said that it is essential to identify appropriate mining sites in the country and manage electricity keeping crypto mining requirements in mind, especially at the regional levels.

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