A tailor shop in Kovel, ukraine, has been exposed as a front for an illegal crypto mining operation. Its masterminds connected their rigs to the local power grid – and stole electricity to power their efforts.
The incident took place in Kovel, a city in Volyn Oblast in northwestern Ukraine. media outlet Kovel Media The report said that during a police inspection of the shop in December last year, officials detected “illegal connections to the transformer”. This connection “allows crypto farm operators” “to consume unmetered electricity.”
A city court ordered the owner of the shop – Alla Daineka – to pay more than $11,500 in damages to Vollenorgo, the city’s electricity provider. He was also ordered to pay court costs of less than $200.
How do illegal crypto miners bypass their meters?
The court heard how officers discovered that shop operators had accessed the “voltage circuit” on the Volnoblenergo transformer by “removing the plexiglass cover” of the unit and disconnecting a series of wires.
They then proceeded to connect the store’s electrical units to the grid – thus bypassing the store’s own meter. This allowed them to receive power directly from the local network.
The court heard that a group of 51 people may have been involved in the crime, with “internet-connected computer equipment” in “sections” of the shop as well as “additional technical equipment” that “converts electricity into cryptocurrency”.
Dieneka reportedly pleaded guilty to the charges, and although she has the right to appeal the verdict, she is unlikely to do so.
The government of Ukraine has expressed pro-crypto sentiments and has attempted to create a progressive system of regulation for the sector.
have also tried Use crypto as a fund raising tool For his military conflict with Russia. And while crypto mining is not illegal in the country, police have attempted to crack down on those trying to steal money from the public power grid to power their rigs.
Last month, the Central National Bank of Ukraine Unveiled a draft concept for a digital UAHwhich it hopes will eventually be used to make retail non-cash payments.
Bitcoin Crypto Related Post