Crypto turmoil: Police raid Kyiv plant, seize 400 mining farms

Ukrainian law enforcers on Thursday confiscated 400 cryptocurrency mining farms during the raid at the premises of the Kyiv-based PJSC Kvazar. The equipment had allegedly been used to finance militants of the self-proclaimed Donetsk and Luhansk People's Republics ("DPR"/"LPR") in eastern Ukraine via cryptocurrency conversion transactions.

Deputy Prosecutor General of Ukraine, chief military prosecutor Anatoliy Matios says the illegal activity was organized in the city of Kyiv, as well as in Cherkasy and Kyiv regions.

Read alsoUkraine cyberpolice suggest cryptocurrencies be banned unless regulated "This morning, a number of raids have been conducted in Kyiv, as well as in Kyiv and Cherkasy regions. As a result, the law enforcers suppressed the activities related to the use of equipment for generating cryptocurrency, partially converted via 'e-wallets' on Qiwi and Yandex. The generated money, officially banned in Ukraine, was used to finance illegal armed groups of 'LPR' and 'DPR,' in particular, for the purchase of military uniform, equipment, weapons and munition," he said at a Kyiv briefing on Thursday, February 2.

According to the official, over 400 farms for cryptocurrency mining have been discovered at the site. Besides the equipment, documents were seized with Russian bank details confirming the transfer of funds to the occupied territories.

The investigation also established a group of persons who organized the mining.

"We have received data on a group of individuals who contributed to the illegal import of dual-use goods. Now measures are being taken to find the organizer of this illegal transaction," Matios added.

However, he has not specified the banks involved in cryptocurrency conversion, as well as the amount of funds transferred.