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Irkutsk, Russia – March 14, 2025
Russian authorities have discovered an illegal Bitcoin mining farm operating within an orphanage in Kazachye, a remote village in Siberia’s Irkutsk Oblast. The operation, uncovered during a raid on March 13, 2025, involved 96 pieces of Bitcoin mining hardware hidden in the three-story facility, raising questions about Bitcoin mining regulation and energy use in the region.
The Bitcoin mining farm was found to be consuming significant amounts of electricity, driving up costs and risking the stability of the local power grid. Located in Irkutsk—a region known for its cold climate and low-cost Bitcoin mining electricity—the setup exploited the orphanage’s infrastructure to maximize Bitcoin mining profitability. While it remains unclear whether Bitcoin or another cryptocurrency was being mined, such operations typically target Bitcoin due to its dominance in the sector.
The discovery highlights ongoing challenges for Bitcoin mining in Russia, where the practice was legalized for private individuals in 2024 but remains plagued by illicit activities. Siberia, particularly Irkutsk, has become a hotspot for both legal and illegal mining due to its affordable energy rates—sometimes as low as $0.03 per kWh—and natural cooling advantages. However, unauthorized operations like this one have strained the region’s power supply, prompting calls for stricter Bitcoin mining regulation. The Irkutsk governor has proposed a year-round ban on mining through 2031 to address grid instability, a measure that may gain support following this incident.
Details about the perpetrators remain limited. Authorities have not confirmed whether orphanage staff were involved or if external operators installed the rigs. The raid is part of a broader crackdown on illegal mining in Siberia, with over 3,200 rigs seized across the region in 2024 alone. The use of an orphanage—a facility intended to support vulnerable children—adds complexity to the case, though no official statements have addressed the ethical implications.
The incident underscores the tension between the lucrative potential of Bitcoin mining farms and the challenges of enforcement. While legal miners contribute to Russia’s growing crypto economy, illegal setups continue to exploit cheap electricity, often bypassing safety and maintenance standards. Further updates on the investigation, including potential charges or the fate of the seized Bitcoin mining hardware, are expected as authorities assess the operation’s full impact.
