Moscow Region “Electric Networks” sued 99 million rubles for illegal mining of cryptocurrencies

Moscow Region “Electric Networks” sued 99 million rubles for illegal mining of cryptocurrencies

The Court of Appeal granted the claim of the State Unitary Enterprise “Electric Networks” to LLC ” Innovative Digital Technologies “(ICT) about illegal mining of cryptocurrencies and ordered the ICT to pay 98.8 million rubles.

ICT illegally placed mining equipment in Korolev, near Moscow, on the territory that until 2017 belonged to the Ministry of Defense of the Russian Federation. In 2019, the land plot was transferred to the ownership of the Moscow Region Development Corporation. During the process of transferring the property complex, the object was transferred to the storage of the management company LLC “Technopark Korolev”.

The contract with the “Korolev Technopark” provided for a ban on the use of the territory’s property and its provision to third parties. However, the management company violated the storage agreement and transferred the site to the use of the ICT. According to the case file, mining equipment was installed on the site, which was connected to the networks without an agreement and without paying for electricity.

The fact of illegal consumption of electricity for mining cryptocurrencies was established after the power grid economy of the technopark was transferred to the State Unitary Enterprise of the Moscow region “Electroset”from April 1, 2019. The management of the “Electric Grid” filed a lawsuit against the ICT for unjustified enrichment due to connection to the objects of the electric grid economy. In August 2020, the court rejected the claim of “Electric Grid”, as the organization failed to prove the fact of the transfer of power receiving devices. ICT lawyers argued that the organization was not engaged in illegal mining.

Subsequently, it was discovered that the ICT was still related to the equipment for mining cryptocurrencies, which was confirmed by the materials of another arbitration case. In November last year, the Arbitration Court of the City of Moscow
satisfied the claim of Bittech LLC, which demanded to withdraw from the ICT containers for mining, as well as many different ASIC miners: Antminer S9, Antminer L3, Antminer D3, Antminer T9, Bitfury b8, Ebit E-9 Plus, Ebit E-10, ZigZl, Baical, KTP 1250/6 housing and power transformer.

The Ninth Arbitration Court of Appeal considered this admissible evidence of illegal electricity consumption and satisfied the claim of “Electric Grid”, collecting 98.8 million rubles from the ICT. The amount of the claim was calculated by the “Electric Grid” on the basis of the maximum capacity of the cable and the duration of the period of illegal electricity consumption.

Recall that a year ago, employees of the Lviv branch of the company “Ukrainian Railways” were convicted of illegal mining of cryptocurrencies using the company’s energy system. Earlier, the Kiev prosecutor’s office reported about an employee of the State Enterprise “Information Judicial Systems”, who illegally used official equipment for mining cryptocurrencies.