Authorities in Ukraine discovered and shut down an illicit cryptocurrency mining plant. The plant reportedly stole electricity to run its activities in the Kyiv area. According to the police, the culpable parties were three inhabitants of the same region who hired a huge structure in the Mucha district to store mining equipment and conduct operations.
The Ukrainian Security Service (SBU) reported discovering an underground crypto farm in Kyiv. They allegedly stole large amounts of power, creating ‘damage’ of more than UAH 3.5 million (about $127,884).
The energy was allegedly stolen by meter tampering or bypassing, implying that the perpetrators messed with electrical meters. They did not read or reflect the actual quantity of electricity utilized. They were paying “symbolically the bare minimum” for high-level consumption.
Law enforcement investigators confiscated crypto mining hardware worth 6 million hryvnias (about $219,230). They are presently attempting to prosecute the perpetrators and determine whether there are any additional people involved. Legal action shall be pursued in accordance with Part 3 of Art. 190 (fraud) of the Ukrainian Criminal Code, which refers to ‘fraud’ and reads:
The Ukrainian Security Service is conducting a computer-technical and economic investigation to determine the extent of the harm. The operation included National Police detectives working under the procedural supervision of the Kyiv Regional Prosecutor’s Office and specialists from PJSC Kyiv Regional Electric Networks.
Ukraine has been focusing on developing clear legislation governing cryptocurrency activity. In September, the Ukrainian Parliament passed draft Law No. 3637, “On Virtual Assets,” introducing new laws that apply to all virtual assets in the nation.
‘The Draft Law,’ which will be approved by Ukraine’s President, allows Ukrainian and non-resident enterprises to provide crypto-related services. The overall gist of the text is that corporations that engage in crypto activities will have to pay a 5% income tax. Individuals will have to pay a 10% + 1.5% military charge for virtual asset operations.
As stated plainly, citizens are not permitted to utilize virtual assets as a form of payment or exchange for goods or services. The president’s recommended modifications to the virtual asset bill are now being considered.
Furthermore, there is no prohibition for cryptocurrency mining, and the businesses do not even require a license. The referenced crypto farm was only unlawful because of meter manipulation, which was also the reason for earlier Ukrainian searches this year.
Several news outlets have reported similar police operations in Russia in recent days. According to reports, law enforcement authorities uncovered a mining farm near Moscow that was illegally utilizing electricity from Rosseti. This Russian power-grid firm is one of the largest in the world.
However, the news has referenced Ekaterina Korotkova’s statements from the Moscow Interregional Transport Prosecutor’s Office, allegedly published by the Russian news agency TASS. Still, the quotation – and hence the stories – are untrustworthy because the source cannot be traced.
What is certain is that Russian authorities will shut down unlawful crypto mining operations in 2021, and a crackdown by the local government on bitcoin activity has already been feared, owing to various ambiguous reports and rumors.
In October, four bitcoin mining devices were captured by Russian police at a security checkpoint on the country’s southern border with China. This sparked debate, with some crypto blogs claiming that the episode signaled a Russian anti-Bitcoin effort.
However, this did not appear to be the case since the equipment was taken due to the miner’s failure to present the requisite papers and pay the charge, and no bill prohibiting crypto mining activities was approved.
