Illegal Crypto Mining Operations Uncovered in Dagestan

Illegal Crypto Mining Operations Uncovered in Dagestan

Authorities in Dagestan, a republic in Russia, have discovered underground crypto mining farms established by illegal operators to evade detection and illicitly siphon power from the electrical grid. Recent raids in Makhachkala, the capital of Dagestan, revealed a hidden mining operation.

According to reports from the Dagestan Cabinet of Ministers and local police, a raid uncovered 17 cryptocurrency mining devices located several meters underground in the Sergokalinsky District. The cabinet released a video of the operation, showcasing rows of mining rigs in a cramped subterranean environment. Officials noted that the operation was being run by individuals identified as “energy thieves.”

The Dagestan government has expressed concern over the impact of illegal mining on the local energy infrastructure, alleging that these operations contributed to a fire at the 110 kV Novaya substation. In response, police have collaborated with Dagenergo, the regional branch of the state-owned power provider Rosseti, to combat the illegal activities.

In a series of recent meetings focused on energy management, the Dagestan government discussed strategies to address the issue of illegal mining. They announced plans to allocate approximately 3 billion rubles (around $32.5 million) for repairs to energy facilities affected by these activities. Dagenergo has confirmed that the fire at the substation was linked to a sudden spike in electricity consumption attributed to unauthorized mining operations.

Earlier this year, Dagenergo appealed to illegal miners to cease their activities, urging them to consider the welfare of their communities and loved ones. Despite these pleas, reports indicate that underground farms and mobile mining units have been proliferating across various regions of Dagestan