A very large illegal Bitcoin mining facility was discovered by police in Orenburg Russia as they were investigating an unusual power consumption. The mining farm had been set up an abandoned factory. The people who set up the mining plant had stolen electricity worthy more than 60 million rubles are could be jailed for several years.
At the scene, investigators found many racks of mining processors. More to that the firm had been equipped with powerful application specific circuits and not the normal video cards which are used by amateur miners.
The miners were using the ASIC devices which are mainly used to mine because they provide the required computing power to process transactions. They, however, consume huge electricity because they require a lot of heat. The cooling in the plant was also good since it was provided by the large industrial ventilators.
The discovery of the firm was made after employees of a local utility detected a very high power consumption from the old plant which had gone out of business years back. The miners used numerous power and never bothered to pay the bills which may lead 10 years imprisonment.
Cryptocurrency mining is becoming very popular in Russia because of low electricity cost. Government officials have asked citizens to stop mining in apartments and garages, but everyone is ting to make a coin using homemade GPU rings. Several cases of fire have been reported because of faulty hardware. Reports have however suggested that amateur mining is not profitable anymore. This has now led to the revolution of industrial mining, and several regions have already declared their readiness in hosting the industrial mining.
Encouraging Industrial Bitcoin mining
The government is also ready to accommodate entrepreneurs who are ready to invest in mining provided they follow the law. This is because businesses and homes in Russia consume less than 60% of the total power the country can produce. This leaves a huge gap of unused power. Last year a Russian businessman bought two electric stations which he intends to full use for Bitcoin mining alone. The countries are even accepting foreign investors for the same business.
The problem with the firm in Orenburg is that it had not received any approvals from any institution. More to that the mining plant situated in the old rubber processing plant is not what the authorities mean by industrial mining. The plant despite being illegal is one of the biggest Bitcoin mining plants in Russia. The government has however shut it down for illegal activities, and the owners will be prosecuted.