Russia Cracks Down on Illegal Crypto Mining Farms in North Caucasus
Russian authorities have dismantled over 100 illegal cryptocurrency mining operations in the North Caucasus since the start of the year. The crackdown follows a nationwide ban on crypto-related activities in the region, with Dagestan accounting for 80% of the seized farms.
Rosseti, the state power grid operator, reported damages exceeding $1.1 million in Dagestan alone, while Ingushetia suffered the heaviest financial losses at $5.7 million. The mining facilities were found to be either illegally connected to the power grid or bypassing electricity meters, causing strain on local infrastructure.
The enforcement action highlights Russia's ongoing struggle to regulate energy-intensive crypto operations. Despite the ban, underground mining continues to proliferate in regions with subsidized electricity rates, creating headaches for both policymakers and utility providers.
