Illegal Russian Bitcoin Mine Lights Up Apartment Block

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Last Updated on 26 November 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Knowing Russian President Vladimir Putin’s attitude towards any illegal operation in his country, you wouldn’t want to be man who made the news yesterday with an illegal Bitcoin mining operation. Now that in itself would be bad enough if discovered by the Russian authorities, but if you manage to also lit up the whole apartment block, land yourself and in the hospital and cause 4 fire trucks to have to roll out towards you in the middle of a Covid-19 pandemic in St Petersburg, you better have a good attorney.

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16 firefighters

According to reports in the Russian press, an unnamed 35-year-old had started an illegal Bitcoin mining operation in his apartment in the midst of St Petersburg.

Only problem was that he had not foreseen any cooling method for the multitude of old computers and electrical cables he had lying around his living room and thus when the fires started crackling, a large part of the St Petersburg firefighters had to come to put out the fire. In all, 16 firefighters, 4 trucks and 40 minutes of work. The criminal also landed himself in the hospital with heavy third degree burns.

US takes over China’s mining power

Meanwhile, as China is cracking down on mining operations and issuing fines for tax evaders (China has 70% of the global Bitcoin hashrate), the US is keen to take over the Bitcoin mining industry Asia is now missing out on.

Ethan Vera, CFO and co-founder of mining company Luxor Technologies, claimed that the US is gaining ground:

U.S. equity markets continue to be the most favorable listing venue for mining companies.

They can raise through at-the-market offerings, which provide a very solid financing method for public companies looking to scale up their operations. Foreign companies have more limited financing levers and have a relatively harder time raising capital through equity.

Perhaps the hospitalized Russian can have a look how the US are organizing mining operations before he decided on another venture.