Kazakhstan Authorities Uncover $16M Crypto Mining Power Theft

Kazakhstan's Financial Monitoring Agency and National Security Committee have dismantled a large-scale illegal crypto mining operation in East Kazakhstan Oblast. The scheme siphoned over $16 million worth of electricity—enough to power a small city—from local utility providers over two years.

Authorities found mining farms consuming more than 50 megawatt-hours of illegally diverted power, equivalent to the energy needs of 50,000-70,000 residents. The stolen electricity was originally allocated for public services and strategic enterprises.

Under current regulations, Kazakhstan only permits crypto miners to purchase electricity through a state-run platform with strict consumption limits. This crackdown highlights growing regulatory scrutiny of energy-intensive mining operations in the region.