Russian Authorities Shut Down 110-Rig Illegal Crypto Mining Farm in Dagestan
Rosseti and Dagenergo have discovered a large illegal crypto mining farm in Makhachkala,
Dagestan. During a raid with the Ministry of Internal Affairs, 110 mining rigs were seized from a private apartment in the city center.
Footage on Rosseti’s Telegram shows the apartment was converted into a mining operation. There were separate rooms for the mining rigs, a control center and a laboratory. Officers also found several illegal electrical connections including a tampered electricity meter.
The operation is ongoing. Engineers are assessing the damage to the power grid. Dagenergo says illegal mining like this puts a big load on the regional power infrastructure.
28 Illegal Mining Farms Shut Down in 2024
This is part of Rosseti’s wider crackdown on illegal mining in Dagestan. They shut down 28 farms in January 2024.
12 criminal cases have been opened against individuals involved in illegal mining. In one case, investigators found a 17-rig underground mining farm in the Sergokalinsky District of Makhachkala in September.
The Russian government has been cracking down on crypto mining recently. They introduced a winter ban on mining in Dagestan and other regions. The ban is until 2031 and is to relieve the load on energy resources during the cold season when heating and electricity demand is highest.
Growing Energy Concerns and Regulatory Push
The number of illegal farms in Dagestan shows the difficulties the Russian authorities are facing with the growing popularity of crypto mining. Illegal miners often bypass electricity meters to stay under the radar and cause financial and infrastructure damage.
The crackdown is a response to pressure from regional leaders, including Sergey Melikov, the head of Dagestan’s government, who recently asked the federal government to take tougher measures. Rosseti is stepping up enforcement and more raids and lawsuits are expected in the coming months.
Crypto mining is still profitable for some but the Russian regulatory environment is getting tougher. Legal miners and companies have to work within a web of restrictions especially in regions like Dagestan where energy is scarce.
Key Takeaways:
Major Raid: Authorities seized 110 mining rigs from an illegal operation in Dagestan.
28 Farms Closed: Rosseti has shut down 28 illegal crypto farms in 2024 alone.
Winter Ban: A mining ban in Dagestan, effective until 2031, aims to conserve energy resources.
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