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Security Service of Ukraine Shuts Down Crypto Mining Farm Near Front Line in Kharkiv

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The main law enforcement agency of Ukraine has detained an illegal cryptocurrency mining facility in the Kharkiv region. The agency said the crypto farm operators were minting coins using large amounts of stolen electricity, threatening the power supply of critical infrastructure.

Illegal mining farm discovered in war-torn Kharkiv region

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Ukrainian Security Service (SBU) officers discovered and shut down an underground cryptocurrency mining center in the eastern district of Kharkiv, the scene of hostilities between the Ukrainian army and invading Russian forces.

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The operation was carried out by the Cybersecurity Department of the SBU together with the National Police of Ukraine and under the control of the Goloseevskaya District Prosecutor’s Office in Kyiv.

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According to a press release published on Tuesday, the cryptocurrency farm consumed hundreds of thousands of hryvnias (thousands of US dollars) in industrial volumes of unpaid electricity.

Ukrainian authorities have said that mining could potentially lead to severe power outages to residential areas and critical infrastructure close to the front lines.

Investigators found that mining equipment was installed by several local residents in a rented warehouse near Kharkiv, the second largest city in Ukraine. They connected mining machines to the network without any permission.

During the searches, the Security Service of Ukraine seized computers and specialized equipment, as well as other evidence of illegal activity.

As part of the ongoing pre-trial investigation, those suspected of organizing an illegal cryptocurrency mining business will be notified. The case will then be heard in court.

In recent years, Ukraine has become a regional leader in the adoption of cryptocurrencies, and the government in Kyiv has taken steps to legalize transactions with virtual assets. However, crypto mining needs further regulation as it is still in a gray area.

The SBU has been harassing miners operating the country’s power grid and has shut down a number of crypto farms in various regions since last year. Other illegal activities related to cryptocurrencies have also been prosecuted. For example, last year a number of online cryptocurrency exchangers were blocked, allegedly sending money to Russian wallets.

How do you think the war affects cryptocurrency mining in Ukraine? Share your thoughts on this subject in the comments section below.

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Credit : news.bitcoin.com

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