Russia Loses $120M Annually to Illegal Crypto Mining Amid Power Grid Strain
Russia faces mounting losses from illicit cryptocurrency mining operations, with an estimated $120 million in annual tax revenue slipping through unregistered activities. Peter Fedorov, an associate professor at MIET, highlights the challenge of quantifying exact losses due to their off-the-books nature. His analysis draws from public data and regional case studies, including the recent discovery of 7,600 illegal mining sites in Irkutsk.
The energy-intensive operations exacerbate power grid instability, triggering residential outages in electricity-constrained regions. "Areas with limited supply capacity bear the brunt—overloads manifest as abrupt blackouts," Fedorov noted. Authorities have ramped up enforcement since June, targeting individuals exploiting state resources for unauthorized mining profits.
