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Just-In: Russian Man Charged In Crypto Mining Fraud

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Just-In: Russian Man Charged In Crypto Mining Fraud

  coingape.com 2 m

Just-In: Russian Man Charged In Crypto Mining Fraud

Russian authorities in the Yaroslavl Region of Russia have registered a criminal case against a 42 year old man from Moscow accused of perpetrating eight cryptocurrency-related frauds after defrauding victims of more than 5 million rubles (approximately $51,000). The case, officially filed on Tuesday, September 26, alleged that the accused carried out these fraudulent activities between 2017 and 2022, with the victims primarily making payments in cryptocurrencies.

What’s the Crypto Mining Fraud?

As per a statement from police, the accused exploited free classified ad platforms, purchasing user accounts with positive reviews to post ads for computer equipment and spare parts falsely. Given that the advertised equipment was often related to cryptocurrency mining, victims opted to pay by transferring funds to the accused’s crypto-wallet.

Earlier, Coingape news reported, another crypto scam involving a Russian actor who lost $250k to the scammers.

This criminal pattern happened in several instances, affecting residents of Kazan, Yaroslavl, and Voronezh, with payments ranging from 11,000 to 87,000 thousand rubles. The total damage from these eight fraud episodes exceeded 5.2 million rubles.

The accused, previously convicted of fraud, was reportedly apprehended at his Moscow region residence, and taken into custody in the Yaroslavl region. The case, along with an approved indictment, has been forwarded to the court for deliberation.

This comes on the heels of an incident earlier this month where equipment valued at 22 million rubles (approximately $228,700) was stolen from a mining hotel in the Russian city of Chelyabinsk.Earlier in June, Russia witnessed another theft of 15,000 ASIC miners under the guise of an offer from RusHydro, a local power plant, shedding light on the vulnerability of the cryptocurrency mining industry to criminal activities.

Russia Crypto Mining Industry is Booming

That said, while these developments underscore the need for vigilance and security in the cryptocurrency space, Russia’s Bitcoin mining industry has continued to thrive with an influx of mining machines into the country.

Russia’s appeal for miners lies in its cheap energy and cold climate, making it an ideal location for mining operations. After China banned Bitcoin mining in 2021, Russia gained significant market share, which has continued to grow amid the ongoing war in Ukraine.

Heightened regulatory scrutiny and taxes in the US and other nations have made Russia even more attractive for mining with Cryptocurrency Mining Group predicting in May that Russia will substantially accelerate its hashrate growth.

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