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Ukraine’s Security Service Shuts Down Crypto Mining Farm Near Kharkiv Frontline – Mining Bitcoin News
Ukraine’s main law enforcement agency has destroyed an illegal cryptocurrency mining facility in the Kharkiv region. The operators of the cryptofarm have been minting coins using large amounts of stolen electricity, threatening the energy supply of critical infrastructure, the agency said.
Illegal mining farm discovered in war-torn Kharkiv region
Officers from the Security Service of Ukraine (SBU) have discovered and shut down an underground crypto-mining center in the eastern Kharkiv region, the scene of military hostilities between the Ukrainian army and invading Russian forces.
The operation was carried out by the Cyber Security Department of the SBU, in cooperation with the National Police of Ukraine and under the supervision of the Kyiv Holosiiv District Prosecutor’s Office.
According to a press release published on Tuesday, the cryptocurrency farm has consumed industrial volumes of unpaid electricity, worth hundreds of thousands of hryvnias (thousands of US dollars).
Ukrainian authorities said the mining operation could have potentially caused severe disruptions to energy supplies to residential areas and critical infrastructure facilities near the front line.
Investigators revealed that the mining hardware had been installed by several local residents in a rented warehouse near Kharkiv, Ukraine’s second largest city. They connected the mining machines to the network without any authorization.
During the searches carried out, agents of the Security Service of Ukraine seized computers and special equipment, among other evidence of the illegal activity.
As part of the ongoing investigation, the suspected organizers of the illegal crypto mining operation will be notified. The case will then be heard in court.
In recent years, Ukraine has become a regional leader in crypto adoption, and the government in Kyiv has taken steps to legalize transactions with virtual assets. However, cryptomining needs further regulation as it is still a gray area.
The SBU has gone after miners who exploit the country’s electricity network and has shut down a number of crypto farms in various regions since last year. Other illegal crypto-related activities have also been targeted. For example, a number of online crypto exchangers, which allegedly send money to Russian wallets, were blocked last year.
How do you think the war affects cryptocurrency mining in Ukraine? Share your thoughts on the topic in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, SBU
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