Catenaa, Saturday, January 25, 2025 – Major Siberian power provider Irkutsk Energosbyt is pursuing legal action against approximately 400 individuals accused of illegally using electricity for cryptocurrency mining.
The firm alleges these miners have stolen $6.3 million worth of power by running mining rigs in locations like garages, apartments, and balconies.
The company has filed 2,113 lawsuits over the past five years, securing favorable rulings in 1,348 cases. An additional 400 lawsuits are in preparation, while 104 individuals have settled out of court.
Irkutsk Energosbyt claims the unregulated use of crypto mining equipment has overloaded local power grids, increasing the risk of accidents and outages.
Many defendants deny the allegations, offering alternative explanations for their high electricity consumption.
One claimed he operated 10 heat guns in a 20-square-meter room to maintain warm temperatures, while another stated he ran a continuous boiler to fill an artificial reservoir.
Irkutsk has emerged as a hub for Bitcoin and Ethereum mining, thanks to its low electricity costs and frigid climate. However, the influx of miners has strained the region’s power infrastructure. Authorities and energy providers have struggled to curb the use of subsidized residential electricity for mining operations.
Russia’s State Duma recently proposed legislation to strip crypto miners of access to subsidized electricity, a measure aimed at reducing power shortages. Crypto mining remains illegal in parts of Russia, including southern Irkutsk, during the winter months.
Despite legal challenges, demand for industrial mining equipment surged in late 2024, with sales tripling compared to the previous year, according to the Industrial Mining Association.
