Russian Ex-Energy Executive Caught Mining Bitcoin With Stolen Power in $88,000 Crypto Seizure

Russian Authorities Seize Bitcoin From Former Energy Executive in Power Theft Case

Russian law enforcement agencies have taken a notable step in tackling illegal cryptocurrency mining by confiscating Bitcoin holdings from a former electricity sector official.

The operation uncovered a sophisticated scheme where stolen power was used to fuel crypto mining rigs, signalling a fresh approach to handling digital asset crimes.

How Did an Energy Insider Exploit the Power Grid for Bitcoin Mining?

The investigation centred on an ex-executive from the Far Eastern Distribution Company’s Amur branch, who previously managed technological connections.

Using his deep understanding of the electrical grid, the individual reportedly bypassed metering devices and created unauthorised links to company infrastructure.

This enabled him to siphon electricity worth over 3.5 million rubles (around $44,334) to run Bitcoin mining equipment at his home during 2024.

Officials from the Investigative Committee (SKR) of the Amur Oblast described the suspect as “mining cryptocurrency in his own residential building, using his knowledge in the field of technological connection to electrical networks.”

The SKR, which leads federal investigations and anti-corruption efforts, coordinated with the Federal Security Service to secure approximately 7 million rubles ($88,570) worth of Bitcoin linked to the case.

What Does This Mean for Cryptocurrency Enforcement in Russia?

Until recently, seizing digital currencies posed legal challenges, as Bitcoin lacked formal recognition within Russian law.

However, legislative efforts in April 2025 introduced proposals that treat crypto assets as intangible property subject to confiscation in criminal cases.

This legal shift enables courts and law enforcement to act more decisively against cryptocurrency crimes.

Though the new framework awaits formal approval, authorities appear to be applying its principles in practice.

Previous high-profile seizures include $8.2 million in crypto linked to the Hydra darknet marketplace and over 1,000 Bitcoin confiscated from a former Investigative Committee officer convicted of accepting bribes.

Is There a Broader Crackdown on Illegal Crypto Mining?

The Amur Oblast case forms part of a wider regulatory and enforcement landscape.

Russia has imposed a six-year ban on crypto mining across several regions due to concerns about electricity consumption, while also legalising mining under strict controls from November 2024.

Earlier police actions included the seizure of thousands of mining rigs in Siberian raids targeting unlawful operations.

This complex regulatory environment reflects the government’s attempt to balance control with selective legalisation.

Domestic use of cryptocurrencies remains limited, but mining and crypto payments have been allowed in specific contexts, partly to navigate international sanctions.

What Other Charges Are Connected to the Case?

The investigation also uncovered corruption allegations against the same executive, accused of accepting bribes from local businesses in exchange for facilitating electricity documentation.

This highlights a pattern of abuse tied to his position, extending beyond power theft to broader misconduct.

The case marks a growing intersection between traditional white-collar crimes and emerging challenges posed by digital currencies in Russia’s energy sector and criminal justice system.