A shocking case has emerged in St. Petersburg where prosecutors accuse a senior official of the Russian Railways of stealing vast amounts of electricity to secretly mine cryptocurrency. This scandal, involving the illegal diversion of energy from state infrastructure, has sparked national debate over corruption, misuse of public resources, and the challenges of regulating crypto. At the center is the Rail Boss who allegedly ‘stole electricity from Russian Railways Network to mine crypto’, a case that blends technology, crime, and politics.
The Accusation: Theft of Electricity for Crypto Mining
Investigators identify Sergei Kuznetsov, head of the St. Petersburg-Finlyandsky Station Electricity Supply Department, as the main suspect. Alongside his deputy, Nikolai Baltser, he is accused of installing crypto mining rigs at two substations—Gromovo and Lugovaya—that were part of the railway’s power grid. These rigs allegedly ran continuously, consuming massive energy without payment and turning public resources into private profit.
Financial Damage & Legal Implications
Authorities estimate the stolen electricity at nearly 1 billion rubles (over US$12 million). Such loss is both economic and ethical, as power meant for infrastructure was diverted. The two men face criminal charges of abuse of authority and property damage. If convicted, they risk prison time and heavy fines, while the scandal casts a shadow on Russian Railways’ reputation.
Duration & Discovery of the Scheme
The unauthorized mining began on September 16, 2024, and went unnoticed for a year. It was exposed on September 16, 2025, after abnormal electricity use raised alarms. Prosecutors say the suspects knew their actions would harm the railway network but carried on regardless, elevating the case from misconduct to criminal abuse.
Criminal Network and the Search for the Mastermind
Authorities suspect the scheme involved more than two people. An unidentified mastermind, possibly another railway insider, is believed to have organized the plan. Kuznetsov has started cooperating with investigators, while Baltser denies wrongdoing. More names may surface as inquiries continue.
Growing Crypto Mining Trends in Russia
This case comes amid rising crypto mining activity in Russia. Once limited to low-cost regions like Siberia, mining is spreading into major cities. Analysts warn that illegal setups not only strain power systems but also fuel corruption scandals similar to this one.
Conclusion
The Rail Boss who ‘stole electricity from Russian Railways Network to mine crypto’ highlights the risks of exploiting state assets for private gain. It underscores how unregulated mining threatens infrastructure and accelerates calls for stricter oversight. Russia’s next steps may define how the country balances digital innovation with accountability.
This case also sheds light on the growing global debate about cryptocurrency’s relationship with energy. Mining is often criticized for its massive power consumption, and when that electricity is stolen from state-owned networks, the risks multiply. Beyond financial losses, such acts can disrupt essential services, weaken infrastructure reliability, and raise questions about national energy security.
For the wider crypto community, the story is a reminder that legitimacy depends on transparency. Sustainable practices and lawful energy usage are crucial if mining is to grow without sparking backlash.
