On June 9, police arrested a resident of Makhachkala, Russia, who allegedly created an illegal mass crypto-mining structure connecting some 500 platforms of Bitcoin Code to the local power grid.

According to the June 6 announcement by local authorities, the 30-year-old crypto-miner established a mining plan that caused economic damage to the state electricity grid worth more than 34 million rubles ($494,000).

The report states that the unidentified individual rented the third floor at a non-residential site in May, located in a construction complex in the suburban city of New Khushet, where he started a mining farm to generate Bitcoin (BTC) and altcoins.

The police reported that the alleged miner was connected to the cables that conducted the power line of the complex through a specialized team.

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Items seized by the police

During the raid, local authorities found 518 computer components used for crypto coin mining.

Authorities opened a criminal case against the alleged miner for causing property damage through fraud or abuse of trust. At the same time, a preliminary investigation is under way to clarify whether the resident of Makhachkala was complicit in the mining scheme.

The police did not provide further details on the altcoins that the suspect was mining, nor on the amount of profit that the plan generated in the short period when the cryptomint mining platforms were active.

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Recent Cases of Illegal Mining Farms Dismantled in Russia

Recently, Russian police launched a criminal investigation against a former head of the regional post office, who managed to mine crypt coins through the office network in a southern town of Mineralnye Vody.

Cointelegraph also reported on an operation carried out by Russian authorities on March 27 that led to the capture of the Bitcoin miners, who stole US$200,000 of electricity each month.