Secret Bitcoin mine uncovered in Russian orphanage
Officials found an illegal mining farm inside a non-profit facility, violating fire and electrical safety laws
As Russia tightens its grip on crypto mining, operators are finding new ways to stay in business. Authorities uncovered a secret mining farm inside an abandoned orphanage in Siberia.
According to Irkutsk prosecutors, a non-profit organization in Siberia was running a secret mining farm in Kazachye village in the Bokhansky District. Although the orphanage had closed, it was still classified as an educational center.
Officials seized 96 mining rigs, reinforcing Irkutsk’s reputation as Russia’s top illegal mining hub.
An Irkutsk court instructed bailiffs to halt land misuse and disconnect the rigs. Prosecutors cited violations of fire and electrical safety regulations, noting that the facility lacked essential safety measures like fire alarms and proper maintenance, posing a serious hazard.
Authorities have launched legal proceedings against the non-profit’s director, citing energy violation, poor governance, and safety breaches.
Crypto mining bans in Russia
Russia’s nationwide crypto mining ban took effect on January 1, 2025, and will last until 2031. Additionally, Siberia enforces seasonal restrictions due to energy demand spikes.
In Irkutsk and two other regions, mining is prohibited each winter—from January 1 to March 15 this year, and from November 15 to March 15 in future years.
Despite these restrictions, Irkutsk continues to attract illicit crypto miners due to its cheap electricity costs. The cold winters also reduce the cooling expenses. However, this has put immense strain on the region’s power grid.
Russian media report that illicit miners are setting up rigs in homes, businesses, and even gardening associations—places never designed for such heavy electricity use. Last month, authorities uncovered a 150-rig mining farm in Markova, Irkutsk, where a resident had illegally wired ASIC miners to a transformer.
The Russian Energy Ministry says the recent ban is easing pressure on the power grid, with electricity consumption in Siberia dropping by 300 MW.
While authorities are cracking down, the bigger challenge is balancing enforcement with energy conservation—especially in regions where underground mining adapts and persists despite tougher regulations.
