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Ancient Russian Prison Found To Be The Breeding Ground For Crypto Mining

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  • Butyrka, the oldest prison in Russia, is reportedly being used for cryptocurrency mining illicitly to mint virtual coins.
  • Cryptocurrency mining software was found in a psychiatric clinic which is operated by Federal Penitentiary Service at the prison.
  • Russia has remained a hot topic since Vladimir Putin has ordered his military to invade Ukraine.

Deputy Warden Accused Of Running Crypto Operation

In the latest news, a Russian warden from the oldest prison of the nation, Butyrka, was accused of conducting a crypto mining operation. The report says that the individual was being assisted by unknown accomplices, helping him in stealing electricity.

The installed hardware consumed 8379.45 kiloWatts of electricity costing 62,175 rubles. Officials discovered the mining operation in a psychiatric facility which was under the command of Federal Penitentiary Service.

Investigative Committee of Russian Federation organizing an inquiry against the accused warden.

As per the reports, the whole crypto mining set up was established during November previous year, and kept excavating the crypto assets until February 2021.

Crypto Conflicts In Russia

The Irkutsk region in Russia formerly witnessed power outages due to the Russians conducting crypto mining operations from their homes, leading the phenomenon to become the common practice there.

The buck was passed to illicit crypto miners for these frequent power outages and breakdowns in residential regions having weak power grids in contrast to the load that mining puts.

To offset the problem, the anti-monopoly agency of Russia raised electricity charges for crypto miners mining from their homes.

Cryptocurrency has become more mainstream globally in the financial network. It is on full display amid the Russian invasion of Ukraine.

Previously, amid the Russia Ukraine war, the United States and its allied nations have imposed sanctions on the attacking nation. This has led Russia to take shelter under cryptocurrencies to evade these sanctions. Although, the nation denies to be involved in such activities.

Prime motive of Bitcoin and altcoins was to eliminate centralization to become free of entities such as governments, central banks etc., a concept which is still to be implemented globally.

Cryptocurrencies have offered hands to Ukraine amid this war, where big guns in the sphere like Gavin Woods, Polkadot founder, offered DOT tokens to help the victim nation.

In an update, Poland has ended a 30 year old deal with Gazprom, a Russian organization, amid the ongoing war, focused on gas supplies and framework, saying that the company was never trustworthy anyway.

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