An illegal cryptocurrency mining operation was uncovered in Makhachkala, clandestinely connected to the regional power grid and responsible for damage exceeding 180 million rubles. Officials described the operation as utilizing 408 mining devices and diverting more than 27 million kilowatt hours of electricity. Investigative materials have been forwarded to law enforcement authorities to pursue charges and clarify responsibility.
Officials from the regional electricity distributor stated that the facility clearly operated a large fleet of devices to mine cryptocurrency while siphoning power that did not appear in official accounts. The theft disrupted the energy supply, pushing up costs for other consumers and undermining reliability for homes and businesses. The case underscores the magnitude of the risk posed by unauthorized mining, which can strain grids and disrupt everyday life in the region.
September reports described illegal mining farms found in bunkers across Dagestan, often linked to the grid and operating without authorization. These concealed sites reveal a broader pattern of unauthorized energy use that compounds regional energy stability concerns.
Last November the head of Dagestan urged the government to ban cryptocurrency mining until the energy network stabilizes, signaling a priority to protect critical infrastructure and ensure a reliable electricity supply for residents and public services.
Separately, a Tyumen region resident was reported selling land that includes a mining farm, illustrating how mining ventures appear across the country and complicate enforcement. The cases have spurred discussions about regulatory measures, energy resilience, and the need for tighter oversight of mining activities in regions where the energy network remains vulnerable.