Ukraine's Security Service said last week that in the city of Vinnytsia, located along the Southern Bug river, there was an abandoned warehouse in its industrial area that once belonged to an electricity company, JSC Vinnytsiaoblenergo.
Upon entry, law enforcement found what it has called the country's "largest underground cryptocurrency farm."
In total, roughly 3,800 gaming consoles were rigged together and stored on metal racks -- and over 500 graphics cards and 50 processors were also found.
The hardware was allegedly used to facilitate cryptocurrency mining, while those apparently responsible stole the electricity required from the city.
Current estimates suggest that the electricity stolen amounts from between $186,200 to $259,300 per month.
Raids took place at the cryptocurrency farm and Ukrainian police also say that searches took place at the "offender's residences," where draft notes on electricity usage, notebooks, handsets, and USB storage devices were also seized.
In a statement (translated), JSC Vinnytsiaoblenergo said that "our company has nothing to do with any illegal activity," and "cryptocurrency mining equipment has never operated in the premises owned by our company."
The utility company also added that there was no evidence of the theft of electricity.
The investigation was conducted by Ukrainian law enforcement agencies under the supervision of the Prosecutor General's Office.
In a separate but notable cryptocurrency farm plot, back in 2019, Chinese law enforcement uncovered cables hidden in fish ponds that were used to connect to an oil rig's electrical grid. Active Bitcoin (BTC) rigs were found hidden in a shed after drones were deployed to track down the perpetrator.
The Ukrainian government successfully secured $225 million in cryptocurrencies and $190,000 worth of Ethereum-based non-fungible tokens, both through donations. Some $134 million was earmarked for humanitarian purposes and about $91 million for the military.
The findings indicate that the Russia-Ukraine war impedes Bitcoin trading volume. A 1% increase in the Russia-Ukraine war leads to a 0.2% reduction in Bitcoin trading volume.
As this infographic based on the Ukraine Support Tracker from the Kiel Institute for the World Economy, Ukraine currently receives the most aid from the U.S. and EU institutions (Commission and Council). The amounts shown include financial support (loans, grants, etc.), humanitarian aid (food, medicine, etc.)
The Ukrainian government – and an NGO providing support to the military – have raised $63.8 million, through more than 120,000 cryptoasset donations since the start of the Russian invasion. This includes a $5.8 million donation by Polkadot founder Gavin Wood, and a CryptoPunk NFT worth over $200,000 .
Bitcoin—the digital asset most often referred to as an alternative to gold—plunged 8% within hours of Russia invading Ukraine, with prices tanking to $34,413 per coin.
In response to mounting financial pressures of Western sanctions, Russia enacted significant legislation legalizing cryptocurrency mining and permitting the use of cryptocurrency for international payments.
For starters, bitcoin's a borderless medium of exchange, so it's not exposed to geopolitical risks in the same way as sovereign currencies. War or no war, bitcoin transactions will go through without a hitch. And since the blockchain is free of financial middlemen, banks can't freeze funds either.
Since January 2022, mostly Western nations have pledged more than $380 billion in aid to Ukraine, including nearly $118 billion in direct military aid to Ukraine from individual countries.
Ukraine is among the top 3 countries in the world in terms of cryptocurrency use. Read more about what services allow you to pay with cryptocurrency and what you can buy with it in Ukraine in our previous article.
Under the draft tax rules, the gain realised by an individual on selling virtual currency will be taxed at preferential rates of 6.5% (5% personal income tax and 1.5% military tax).
The DEC appeal has now raised over £438 million and helped an estimated 8.2 million people. Our longest-running appeal will close for donations at the end of December 2024 but donations will continue to be spent in 2025.
Introduction: My name is Van Hayes, I am a thankful, friendly, smiling, calm, powerful, fine, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.
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