Russian police officials in Butyrka, Russia’s oldest prison bitcoin and cryptocurrency It is investigating allegations of mining activity.
The deputy warden of the prison is accused of stealing electricity for BTC mining with the help of unidentified accomplices.
Deputy Warden Accused of Mining Cryptocurrency Inside Prison
A top manager of the Butyrskaya prison administration in the Tverskoy District of central Moscow has been under investigation for establishing a crypto mining facility.
Also known as Butyrka, this prison is known as Russia’s oldest prison since it was built in 1771.
Cryptocurrency mining equipment was found in the prison building of a psychiatric clinic operated by the Federal Penitentiary Service.
The Investigative Committee of the Russian Federation is investigating one of the deputy directors of the prison for abuse of power, Russian business newspaper Kommersant reported.
Investigators have so far found that the officer in question installed mining equipment in the prison in November 2021, along with his yet unidentified accomplices. Mining equipment reportedly operated until February of this year.
Mining Equipment Considered to Consume $1,000 of Electricity
During this time, the mining machines consumed a total of 8,400 kW of electricity, and the cost of the electricity bill of about 62,000 rubles ($1,000) was covered by the state. The deputy director is accused of “acting that clearly exceeds his powers and, as a result, materially violating the legally protected interests of society and the state.”
Crypto mining using discounted or stolen electricity for citizens seems to be an additional source of income for many Russian citizens.
Regions historically known for low electricity charges for the population and public institutions, such as Krasnoyarsk Krai and Irkutsk Oblast, are particularly well chosen for such activities.
*Not investment advice.