Russian authorities have shut down one of the most unique illegal cryptocurrency mining operations ever seen—one that was hidden inside a KamAZ truck—located in Buryatia. Our covert operation had been stealing power from an adjacent community—wreaking havoc on the place’s grid. This marks the sixth documented case of electricity theft associated with crypto mining in the area this year. Second, it emphasizes the continuing harrowing obstacles that communities must overcome to rein in this booming business.

The illegal operation was uncovered as part of the Baikal Power Grid Company’s routine inspection of power lines in the Pribaikalsky District. Included within the truck, authorities discovered 95 illegal mining rigs and a mobile transformer. The illegal installation had been siphoning power from a 10-kilovolt line, sufficient energy to power a small hamlet.

Discovery and Aftermath

Rosseti Siberia’s Buryatenergo unit announced the raid, admitting that the severity of the electricity theft was strangling the utility. Two additional suspects, who were linked to the illegal mining operation, immediately fled in an SUV from the scene. They fled moments before police showed up. While the suspects are still at large, an investigation continues to sort out the depth of their complicity.

Our story serves as an example of what extremes people will go to. As a result, they’re chomping at the bit to profit from the energy-intensive process of cryptocurrency mining. Electricity theft will further destabilize the reliability of the power grid. It can force the abandonment and destruction of public infrastructure that local communities invested in and built out.

Regulatory Context and Restrictions

Russia has been the most well-known country to struggle with the balance of regulating cryptocurrency mining, especially in areas that suffer from electricity deficits. Then in December 2024, the federal government instituted a TEMPORARY MINING BAN during peak energy months. This ban applies to areas such as Dagestan, Chechnya and eastern Ukraine currently occupied by Russia. The southern Irkutsk region’s ban has been in place since April.

Mining is banned throughout the majority of Buryatia from November 15 to March 15 in response to regional energy crises. Indeed, only registered enterprises are allowed to mine outside of the banned aforementioned time window. This is especially true for remote districts such as Severo-Baikalsky and Muisky. Companies such as BitRiver, major players in Russia’s burgeoning Bitcoin mining industry, stake their business on cheap electricity coming from Irkutsk.

Broader Implications

The case highlights a growing cybersecurity threat linked to cryptocurrency mining. Kaspersky has tied the new hacker group dubbed “Librarian Ghouls” or “Rare Werewolf” to hundreds of Russian devices. Indeed, these groups have recently been implicated in illicit mining operations, among other cybercrimes.

Russia's largest bank, Sber, offers Bitcoin-linked bonds, indicating the country's complex relationship with cryptocurrencies. While authorities crack down on illegal mining operations, the government explores ways to integrate digital assets into the financial system.