Russia dismantles “Mining Hotel” scam that robbed USD $ 3.2 million

The supposed business offer proposed to those interested to house their devices ASIC in adequate facilities for mining, and derive the profits of these activities in exchange for a small commission. However, the scammers sold the teams and stayed with the capital.

***

• A 26 -year -old was arrested for operating a false “Mining hotel” In Irkutsk, Russia.
  
• The victims delivered their teams and money in exchange for alleged passive profits.
  
• The authorities still look for the others involved in the Fraudulent group.
• Mining hotels are popular given the complexities and restrictions around cryptocurrency mining.

In a police operation in charge of Russian authorities, the arrest of a 26 -year -old man suspected of having led a cryptocurrency fraud that affected more than 100 people, capitalizing on the equivalent of USD $ 3.2 million in funds stolen to the victims, was carried out.

According to him Interior Ministry of the Irkutsk region In a published statement, the scheme promised passive income in exchange for delivering equipment ASIC and money to participate in an assumption “Mining lodging service”. However, the organizers, instead of complying with the agreed, They would have sold the teams received and would have appropriated the money delivered by interested persons.

How did fraud operate?

The investigation began in February, after a local resident denounced the police that had delivered his mining team to an individual who claimed to be managing a mining lodging service.

The concept, colloquially known as “Mining hotel” It is not new. These are facilities that offer space, maintenance and electricity to operate cryptocurrency mining machines in exchange for a rate or participation in profits. In this case, the model was used as a facade for a scam.

According to the authorities, the young detainee did not act alone. Next to him, at least two accomplices participated in the sale of the teams and in the appropriation of the funds that were delivered to them for alleged purchases of new mining devices.

More than 270 million stolen rubles

The total amount of fraud would amount to RUB 270,000,000, equivalent to approximately USD $ 3,200,000. The sum was accumulated after deceiving more than a hundred people, many of whom expected to obtain constant returns without the need to get directly involved in mining.

He Irkutsk Interior Ministry He indicated that a criminal case for fraud against the suspect has been opened and that the investigations continue to find the whereabouts of the other involved, who are currently fugitives.

This is not the first case of this type in the region. In 2022, the authorities investigated a similar scam, in which two individuals deceived local citizens through a false lodging scheme for mining equipment, appropriating approximately Rub 2,000,000.

These patterns indicate an interest in cryptocurrency mining, especially in contexts where technical knowledge is still limited, and where high return schemes are especially attractive to people without experience in the sector.

Risks and warnings for the investor

The promise of passive income is a frequent narrative in scam related to cryptocurrencies, especially in investment models where equipment or tokens are delivered to third parties in the hope of obtaining automatic yields.

The Russian authorities have recalled on several occasions that the legal status and reputation of any service that promises to operate mining equipment in third parties must be verified.

In addition, they recommend distrusting projects that request cash advances or hardware delivery without verifiable contracts and without clear evidence of legitimate operations.

Meanwhile, Irkutsk investigations continue, and it is expected that in the coming weeks the other group members who set up this fraudulent scheme will identify.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

Subscribe to our newsletter