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Crypto mining site using PlayStation 4 consoles shutdown in Ukraine for stealing electricity

John KumiBy 0Edited by John Kiguru 15. July 20213 Mins Read
  • Ukraine Security Service (SBU) has uncovered a crypto mining facility that’s been stealing electricity to power its operation.
  • Since the time of operation, electricity worth $186,200 to $259,300 was stolen each month.

Ukrainian authorities have uncovered and shut down the largest cryptocurrency mining facility in the country. According to reports, Ukraine’s Security Service (SBU) found an abandoned warehouse in the city of Vinnytsia situated along the Southern Bug River. A closer look discovered that the facility once belonged to an electricity company called JSC Vinnytsiaoblenergo. 

Upon entry, about 3,800 rigged Sony PlayStation 4 consoles together with phones, laptops, 500 graphic cards, and 50 processors were discovered. The operators allegedly used stolen electricity from the city to power the equipment to mine cryptocurrency.

Authorities discovered that the facility operators had tampered with the electricity meter to prevent the actual readings of the energy consumption. Since the time of operation, electricity worth roughly $186,200 to $259,300 had been stolen each month. 

SBU disclosed that the action could have led to electricity scarcity due to a spike in power consumption caused by the mining facility. JSC Vinnytsiaoblenergo released a statement to object to the claim that it is behind the operation of the facility, stating that there is no evidence to support the theft of electricity. 

Our company has nothing to do with any illegal activity. Cryptocurrency mining equipment has never operated in the premises owned by our company.

Many reports also mentioned that the illegal mining facility was being run by the residents of Kyiv and Vinnytsia. The security service of Ukraine has initiated criminal proceedings for the unauthorized use of water, electricity, and thermal energy according to the reports. 

Ukraine cracking down illegal mining facilities

Interestingly, using gaming consoles to mine crypto is not popular, but not completely unheard of. A YouTuber identified as Stacksmashing once modified his GameBoy to mine Bitcoin.

Ukraine has been very active in the past few months cracking down mining facilities that are using unauthorized power. In early June, the Security Service of Ukraine uncovered a mining facility that was illegally connected to the Dnipropetrovsk Oblast power grid. The facility had used electricity worth $70,000 in three months, which led to the seizure of 350 mining rigs. About two weeks ago, another crypto mining facility that illegally operated in Chernihiv Oblast was shut down. 150 ASICs were seized after it was discovered that $110,000 worth of electricity had been used in two months. 

Ukraine is recognized as one of the world’s biggest adopters of crypto. However, regulations have not yet been introduced to control its use. An updated bill on virtual assets was submitted by the Digital Transformation Committee which according to some government bodies needs to be revised. 

Related: Stellar Lumens: SDF picked by Ukraine’s government to develop CBDC

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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