Officials in Russia’s Irkutsk region have filed over 1000 lawsuits against those who have the potential to mint their own currency, such as miners. In more than half of these cases, the courts have demanded that the defendants cover the costs of the electricity distributors.
Hundreds of Lawsuits Filed Against Several Cryptocurrency Miners in Irkutsk For Mining Digital Currencies With Sponsored Electricity
Power distributors in the Irkutsk Oblast of Siberia have filed the 1000th lawsuit against customers who illegally mine cryptocurrency in residential buildings. In 600 of these cases, judges determined that the so-called “grey” miners should compensate the operators of distribution networks for losses and damages to the amount of more than 260 million rubles ($3.5M).
The most recent case involves a homeowner from the village Novaya Razvodnaya, who had a monthly average electricity consumption of nearly 80,000 kWh for a 12-month period, which is more than the total consumed by all 15 households along the same street.
The man claimed that he did not mine cryptocurrency and instead used heating tools to dry his basement, but the Irkutsk Regional Court refused to accept his explanation and he was ordered to pay the local energy company Irkutskenergosbyt more than 2 million rubles, which is equal to around $27,000.
The difference between the subsidized electricity rates for domestic use (which can be as low as $0.01 per kWh in rural areas) and the higher rates that businesses must pay should be covered by fines.
Authorities have been making efforts to crack down on home cryptocurrency mining in the area in recent years, resulting in additional income for many people. Officials believe that the regulation of mining in Russia can be solved by introducing differentiated tariffs based on consumption.
Citing Deputy Energy Minister Pavel Snikkars, the Russian press reported in December that several electricity distribution companies have started creating makeshift mining farms in residential buildings due to elevated loads at substations, and they are now prosecuting illegal miners.
While cryptocurrency mining has yet to be fully regulated in Russia, with a dedicated bill being discussed in parliament, these activities are not necessarily prohibited. However, utility companies may still be able to prove that customers are not using the electricity for domestic needs and ask them to pay business rates.
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