A secret mining farm has been uncovered in Bodaybo, Irkutsk Region, which investigators link to a 44-year-old local resident. According to the prosecution, illegal cryptocurrency mining was carried out in an industrial workshop and cost the power company about 8 million rubles.
How the Mining Farm Operated
Investigators believe the equipment operated for four years: from January 2021 to January 2025. The site was set up in a workshop rented by the accused man’s wife. Inside were a special container and soundproof boxes.
At least 39 devices for mining cryptocurrency were installed in them, along with auxiliary equipment. This setup allowed the farm’s operation to be concealed and reduced noise, although the energy efficiency of the installation did not relieve the organizers of the obligation to legally pay for electricity.
Why the Case Became Criminal
According to the prosecution, the farm was connected directly to a transformer substation: without a contract with the power supply company and bypassing metering devices. As a result, the electricity bills essentially fell on the landlord, who, investigators believe, did not know what was happening in his industrial premises.
The man is charged with causing property damage on a particularly large scale through fraud or abuse of trust. This qualification corresponds to Part 2 of Article 165 of the Criminal Code of the Russian Federation: it concerns damage without signs of theft, when a resource is obtained through deception, bypassing accounting, or abuse of trust. Criminal liability arises not because of mining itself, but due to illegal connection, concealment of consumption, and large or especially large damages. In less serious cases, administrative fines are possible, for example, for unauthorized connection to power grids or violation of electricity metering rules. If the court finds the man guilty, he could face up to five years of forced labor or the same term of imprisonment.
Market Context
In Bodaybo, industrial mining is permitted, but as in Russia overall, participants must be included in the state register of miners. This is especially important for those considering investing in cryptocurrency mining equipment, including Bitcoin.
Similar cases have already been identified in other regions. Recently, in Rossosh, Voronezh Region, employees of “Voronezhenergo” and “Rosseti Center” discovered a hidden farm with 110 devices. The power company estimated the damage at about 5.9 million rubles.
What to Consider Before Launching a Mining Farm
A mining farm is a set of devices that perform calculations to mine cryptocurrency and operate almost continuously. Such a site usually includes ASIC or GPU installations, power supplies, network connections, cooling, ventilation, and an energy consumption control system.
Profitability is calculated by net profit: expected revenue from mined coins minus electricity, rent, maintenance, and fees. The result is most affected by the cost of electricity, cryptocurrency exchange rate, network difficulty, hashrate, and equipment energy efficiency. Electricity consumption is estimated by power: the equipment’s power in kilowatts is multiplied by hours of operation and number of days, then cooling and ventilation are factored in.
ASICs are more often chosen for tasks where high hashrate and energy efficiency are important, while GPU farms offer more flexibility for configuration and algorithm changes. In any case, a legal connection, a clear electricity payment scheme, and network load control are required.
Placement and Risks of a Mining Farm
It is technically possible to keep a mining farm at home, but the risks quickly become apparent: noise, overheating, high load on wiring, fire safety requirements, and neighbor complaints. If the connection is made bypassing meters or without a contract, technical problems are compounded by fines and the risk of criminal charges in case of significant damage.
The site for the farm is chosen based on available power, electricity rates, ventilation, cooling, noise level, and legality of the connection. A home is convenient for a small start, an industrial facility is better suited for a larger number of devices, and a data center removes some technical concerns but increases placement and maintenance costs.
