Tajikistan Bleeds $3.52M in 2025 from Rogue Crypto Mining Operations

Crypto bandits drain millions from Tajikistan's power grid—while the government scrambles to plug the leaks.

The energy heist no one saw coming

Illegal mining farms siphoned enough electricity to power a small city last year, turning Tajikistan's hydropower into a shadow crypto treasury. Authorities claim they're cracking down—but with global Bitcoin prices hovering near all-time highs, the black-market incentive keeps growing.

When regulation lags behind innovationCentral Asia's cheap energy makes it prime real estate for underground mining ops. Tajikistan isn't alone—neighboring Kazakhstan and Kyrgyzstan face similar drains. Yet somehow, bureaucrats still act surprised when unregulated tech outsmarts their decade-old infrastructure.

Another case of public resources funding private crypto gains—because nothing says 'financial revolution' like stealing electricity to print digital money.

Rampant Illegal Mining in Tajikistan

While Tajikistan has yet to define a clear regulatory stance on digital assets, unauthorized crypto mining has become a persistent issue. Authorities report the annual closure of mining farms operating in private homes and businesses, often accompanied by penalties for those involved.

Most of the reported cases relate to the illegal consumption of electricity. Since January 2025, more than 190 criminal cases have been opened concerning the unauthorized use of electricity, with a majority involving crypto miners. Authorities noted that over 3,988 individuals were arrested for using electricity without paying, with the total outstanding bill amounting to roughly $4.26 million.

Mining cryptocurrency requires access to powerful hardware, high-speed internet, and a stable electricity supply. For private miners, the electricity costs are often prohibitive, which drives some individuals to resort to illegal methods to fund their operations.

In the Sughd region of Tajikistan, prosecutors reported opening seven additional cases against individuals caught mining cryptocurrency illegally. Authorities confiscated 135 mining devices found inside residential buildings, with damages estimated at over $30,000.

Kazakhstan’s Efforts to Curb Mining-Related Energy Theft

Tajikistan is not alone in dealing with illegal electricity usage for crypto mining. Neighboring Kazakhstan has also initiated measures to curb the practice, aiming to protect its national energy grid. Authorities conducted a crackdown in collaboration with the Financial Monitoring Agency and the National Security Committee, uncovering a scheme where employees of a local energy company supplied mining operations with more than 50 megawatt-hours (MWh) of electricity intended for residential and commercial use over the past two years.

The stolen electricity in Kazakhstan was valued at approximately $16.5 million. Investigations revealed that the proceeds were used to acquire real estate and vehicles, all of which have since been confiscated by court order. While crypto mining itself is not illegal in Kazakhstan, authorities have sought to regulate its impact on the energy grid.

Recent legislation in Kazakhstan limits mining farms to purchasing no more than 1 MWh of electricity and requires them to source power through the Ministry of Energy. This regulation aims to curb the sector’s unchecked growth, which expanded after China banned crypto mining in 2021, prompting miners to relocate to Central Asia to take advantage of cheaper energy and lax enforcement.

Alex de Vries, founder of Digiconomist, commented on the regional trends, stating, “Mining activities in Kazakhstan received a boost after China’s ban in 2021, making the region attractive for miners due to low electricity costs and inconsistent regulatory oversight.”

Implications for Central Asian Energy and Crypto Markets

The losses in Tajikistan and energy theft in Kazakhstan highlight the challenges governments face in balancing the growth of the crypto sector with maintaining grid stability. With the rising adoption of cryptocurrency mining, energy authorities are under pressure to prevent revenue losses and protect infrastructure.

Illegal mining not only results in financial damages but can also disrupt energy supply for residential and commercial users. As demand for mining operations grows, so does the potential for system overloads, blackouts, and increased operational costs for utilities. Both Tajikistan and Kazakhstan are taking steps to regulate the sector, emphasizing compliance and accountability.

A Broader Trend Across Central Asia

Central Asia has emerged as a hotspot for cryptocurrency miners since the relocation of Chinese operations in 2021. The region’s cheap electricity and relatively permissive regulatory environment initially attracted miners seeking to reduce operational costs. However, inconsistent enforcement has led to illegal mining practices, prompting governments to respond with stricter oversight.

In Tajikistan, the state’s approach includes criminal investigations, arrests, and seizure of mining equipment. The country has allocated $3.52 million to compensate energy providers affected by unpaid electricity usage, reflecting the significant economic impact of unauthorized mining.

Kazakhstan’s approach involves regulatory limits, monitoring, and enforcement against large-scale thefts, alongside ongoing efforts to ensure that legal mining farms comply with energy consumption rules. These measures aim to prevent disruption to the national grid while allowing legitimate operations to continue.

Conclusion

Illegal crypto mining in Central Asia is causing millions of dollars in damages, straining energy grids and prompting regulatory responses. Tajikistan’s $3.52 million loss underscores the economic toll of unauthorized mining, while Kazakhstan’s crackdown on illegal electricity use signals a broader regional effort to balance the growth of cryptocurrency with national energy security.

As the sector continues to expand, governments in Central Asia are likely to strengthen oversight, implement stricter rules, and penalize illegal operations, ensuring that crypto mining does not compromise public infrastructure or lead to significant financial losses.