What happened?
The power chiefs at Russian Railways have been accused of stealing electricity from their employer to operate private cryptocurrency mining rigs. Sergei Kuznetsov, the head of the RZD’s St Petersburg-Finlyandsky Station Electricity Supply Department, and his deputy Nikolai Baltser, have been arrested and charged with power-related offenses. They allegedly stole over $12 million worth of power.
Who does this affect?
This incident primarily affects Russian Railways as electricity was stolen from their central power grid. It impacts the state-owned company’s resources which were used for energy-intensive mining. Additionally, the crime involves a broader criminal group that includes other RZD employees.
Why does this matter?
It matters because such unlawful activities can have significant implications on market dynamics and energy consumption. The uncontrolled consumption of electrical energy for crypto mining can lead to an imbalance in the supply and demand for electricity. Furthermore, it raises concerns about the ethical boundaries within the evolving crypto industry, potentially impacting its reputation and regulatory considerations.