Dark Times Ahead for Illegal Crypto Miners in Russia

Russia’s power utilities and telecom providers are joining forces to crack down on illegal cryptocurrency mining, using a patented AI-driven monitoring solution.

The Tools Are Already Here

Illegal crypto mining remains a growing problem in Russia. These unauthorized operations often hide in abandoned facilities or social infrastructure buildings, bypassing energy metering systems and paying neither taxes nor electricity bills. This distinguishes them from 'gray' miners, who operate in residential areas and pay at consumer rates—which are far lower than industrial tariffs.

The brunt of the losses from black-market mining falls on energy suppliers. Russian utility giant Rosseti estimated its losses at 1.3 billion rubles in 2024 alone. And according to CEO Andrey Ryumin, that’s just the tip of the iceberg.

Telecom operators now have the potential to help identify illegal mining operations by analyzing data traffic patterns. 'If we observe consistent, high-volume data transfer, that’s a red flag for mining activity,' Ryumin explains. 'We’re currently working with operators to identify these locations and determine their legality.' He added that all the necessary technology for such surveillance already exists, and discussions are underway to form a dedicated task force.

A Unified Front: Power Meets Telecom

Telecom providers have confirmed active discussions about anti-mining strategies. According to Rostelecom, joint approaches are being finalized. Notably, MTS and Rosseti have already implemented pilot programs in several Russian regions.

The program uses the AI-based MTS EnergyTool platform, which analyzes internet traffic and smart meter data through machine learning. 'Areas with abnormal data spikes are flagged on a map, helping utilities locate unauthorized mining farms,' explained Oleg Aldoshin, MTS Vice President for Corporate Business.

Underground crypto mining is a serious threat to regional energy systems. A single covert operation with hundreds of devices can consume as much electricity in a month as an entire urban district does in a year. This often results in overloaded grids and blackouts for everyday consumers

Pavel Fedosov

Head of IoT at MTS

This tool is already outperforming older detection methods, such as flagging high electricity bills. Once more regional data is gathered, national rollout plans will become clearer.

Scaling Nationwide and Supporting Legal Miners

In the future, more telecom providers are expected to join the initiative, creating a country-wide net with no 'blind spots' in internet traffic surveillance. Importantly, the crackdown will target only illegal operators. Legal miners, by contrast, stand to benefit.

Rosseti plans to offer official mining placement services. With detailed insights into power consumption and network load, the company can identify optimal sites for legal operations—where infrastructure is underutilized and investment-return ratios are favorable.

International Outlook and Export Potential

If successful, the strategy will benefit every Russian citizen. Reducing illegal energy use will ease pressure on providers, potentially preventing electricity rate hikes. Better distribution of power loads will also reduce network failures.

Moreover, this public-private partnership could serve as a showcase of Russia’s cross-sectoral innovation in energy technology. The AI-powered monitoring model has export potential—particularly in countries with similar infrastructure challenges, such as those in the South Caucasus and broader CIS region.

These regions also face rampant illegal mining due to weak monitoring. Russian IT solutions, already proven in practice, could help solve the problem quickly and effectively.