Caucasus Faces Surge in Clandestine Crypto Mining; Energy Theft Hits 63 Million Rubles

Since the year’s outset, underground miners in the Caucasus have pilfered energy totaling 63 million rubles. While the Irkutsk region dominates in mining activities, covert cryptocurrency operations are gaining traction in the North Caucasus. In just eight months, these illicit operations siphoned off 20 million kWh of energy, according to Bits.media.

Rosseti North Caucasus confirms Dagestan as the primary hotspot for these undercover activities. Since January, nine illegal farms were unearthed in the region. Moreover, the Stavropol Territory and Kabardino-Balkaria reported one covert operation each. Officials have forwarded eight cases to law enforcement, and three more are under investigation.

To combat this, specialists are meticulously analyzing electricity usage dynamics. They are pinpointing loss centers, assessing power grid consumption, and performing inspections. Yury Korolev, from Rosseti North Caucasus, shared their strategy: “We detect violators by gauging power consumption shifts in grid sections.”

Intriguingly, the previous year saw 33 illicit farms detected in the North Caucasus, consuming 52 million kWh. Dagestan led the pack, harboring 30 of those operations. As a remedial measure, the Russian Ministry of Energy contemplates differential electricity tariffs for miners. The goal is to entice them to relocate to areas with surplus power production.