Russian Railways Executives Arrested for Alleged Crypto Mining Power Theft

Two senior officials from Russian Railways (RZD) have been detained on charges of stealing electricity to operate cryptocurrency mining rigs. Sergei Kuznetsov, head of the St. Petersburg-Finlyandsky Station Electricity Supply Department, and his deputy Nikolai Baltser face accusations of siphoning nearly 1 billion rubles ($12 million) worth of power from state infrastructure.

Authorities claim the duo abused their positions to facilitate illegal mining operations at rail power substations. An unidentified mastermind, believed to lead an organized criminal group within RZD, allegedly paid the executives for access to the energy grid. Investigators discovered mining equipment illegally connected to railway facilities during raids.

The Smolninsky District Court ordered both suspects held until November 15 as the investigation continues. This case highlights growing concerns about industrial-scale power theft for crypto mining operations worldwide.