Authorities in Ukraine have made a significant discovery of an illegal crypto mining farm operating within a state-owned enterprise in the Lviv region. The State Bureau of Investigation (SBI) revealed that the mining farm was being run by managers of a branch belonging to the state-owned company Forests of Ukraine in Rava-Ruske, a town located near the Polish border.
Illegal Farm Profits and Misuse of Government Resources
The SBI’s official statement disclosed that the illegal farm had generated profits amounting to over $108,000 for its masterminds. Shockingly, it was revealed that the farm had also misappropriated government resources. These include electricity from the public grid, which amounted to approximately $41,000.
Further, the bureau identified the former director of the branch, who currently leads another branch, as the main orchestrator behind the operation. Additionally, the current director, who previously served as the deputy to the former chief, was complicit in setting up the farm.
The chief accountant and other responsible individuals within the branch also played crucial roles in its establishment. The farm had been operational for over a year. Ill-gotten coins are mined and stored in specially created personal crypto wallets while the enterprise’s accounts settled the electricity bills.
Discovery of the Illegal Ukrainian Crypto Mining Farm
Frequent power overloads on regional networks arouse suspicion among local authorities. These overloads results in blackouts and widespread interruptions in power supply to residential facilities and local infrastructure.
Subsequently, law enforcement officers conducted a raid on the premises. They seized various equipment such as flash drives, computers, laptops, mobile phones, video cards, power equipment, motherboards, processors, hard drives, cooling equipment, and servers. The estimated value of the confiscated equipment exceeded $81,000.
Arrests and Charges for Embezzlement of State Property
However, the alleged masterminds behind the illegal operation have been apprehended and charged with embezzlement of state property. The cases have been transferred to the Ternopil Regional Prosecutor’s Office, which will oversee the legal proceedings.
The organizers may face imprisonment for up to 8 years if convicted. Authorities are also conducting investigations into several other individuals believed to have been involved in the illicit mining activities.
Ukraine’s Initiatives Against Crypto Corruption
In recent times, Ukraine’s anti-corruption bureau announced a comprehensive plan. This is to combat the increasing occurrence of “crypto corruption” within the country.
Furthermore, Ukraine aims to implement cryptocurrency regulations and introduce new tax rules for crypto traders. This is inspired by the European Union and as a part of its ongoing efforts to regulate the industry and promote transparency.
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