Amid risk of energy deficit, Ukraine closes another cryptocurrency farm

With Growing threat of power shortages during the winter months, Ukraine dismantled another large coin minting facility illegally pulling electricity from the grid. The country’s security agency said it is stepping up efforts to ensure the country’s energy system is well protected from these consumers.

Large-scale illegal mining operation discovered in central Ukraine

The Security Service of Ukraine (SBU), the country’s main law enforcement agency, is stepping up “systematic work to ensure the protection of critical infrastructure in the United Energy System of Ukraine,” a statement said. press this week. The announcement provides details of its latest operation against illegal crypto mining in the country:

An underground cryptocurrency farm has been discovered in the Cherkassy region. Operators have stolen industrial volumes of electricity from the regional power grid for bitcoin mining.

Preliminary estimates shared by the SBU suggest that the Ukrainian state has suffered financial damage amounting to more than 6 million hryvnia (nearly $ 330,000). The stolen electricity, officials say, is enough to power more than a dozen homes for several years.

Amid energy deficit risk, Ukraine shuts down another crypto farm
Source: SBU

The security service said the mining business was organized by local businessmen in rented warehouses. They illegally connected their equipment to the grid operated by Cherkasyoblenergo, the region’s electricity distribution company. The day-to-day operation of the equipment reportedly inflicted “large-scale energy losses” on the state-owned company.

During a search of the premises, officers found further evidence of illegal activity, the SBU added without giving details. “Investigative actions are underway to prosecute the organizers of the illegal enterprise” in the framework of proceedings under the Ukrainian Criminal Code, the organization stressed. Representatives of the national police and the prosecutor’s office are also involved in the case.

The growing popularity of cryptocurrencies has made Ukraine an adoption leader in recent years. The Kiev government has taken steps to legalize “virtual assets”. While the mining of digital coins is not prohibited, it is also not regulated. This year, Ukraine’s Security Service attacked miners illegally exploiting the country’s electricity supply network, shutting down a number of crypto farms in various regions.

Other crypto-related activities have also been targeted. In August, the SBU blocked a number of online crypto exchangers that allegedly sent money to Russian wallets. Last week, law enforcement officials exposed a criminal group that specializes in stealing cryptocurrency through malware and laundering illicit money for hackers.

Do you think the Ukrainian authorities will continue to crack down on crypto mining in the country? Tell us in the comments section below.

Tags in this story

agency, agents, coin minting, crypto, crypto farm, cryptocurrencies, cryptocurrency, damage, electricity, energy, financial losses, illegal mining, investigation, law enforcement, mining facility, mining farm, operation, Police, SBU, Security Service of Ukraine, Theft, Ukraine, Ukrainian

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