Dagestan Cracks Down on Illegal Crypto Mining Operations
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 1h ago- Illegal Mining Operation Shutdown: Authorities in Dagestan have shut down an illegal crypto mining operation in Maidanskoye, where a 52-year-old local resident organized 68 mining devices connected directly to power lines, causing damages exceeding 1.2 million rubles.
- Increase in Electricity Theft Cases: Since the beginning of 2025, Dagestan has recorded 73 cases of electricity theft linked to illegal mining, with a total stolen electricity volume of 12.6 million kilowatt-hours and cumulative financial losses of approximately 85.7 million rubles, highlighting the severity of the issue.
- Regional Mining Proportion: Data from MTS Digital Ecosystem indicates that Dagestan accounts for 47% of all detected illegal mining farms in the North Caucasus Federal District, significantly surpassing other regions and underscoring its dominance in underground mining activities.
- Comprehensive Mining Ban Enforced: A complete ban on cryptocurrency mining has been enforced in Dagestan and the entire federal district since January 1, 2025, aimed at protecting power grids and reducing equipment wear, although underground mining activities continue to pose challenges to regulators.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
