Dagestan Tops Illegal Bitcoin Mining Cases in Russia

Dagestan recorded 58 illegal bitcoin mining cases in 2025, causing damage of over 650 million rubles, according to Rosseti North Caucasus.

Illegal bitcoin mining rises in Dagestan

Rosseti North Caucasus reported that Dagestan leads all regions in the North Caucasian Federal District for illegal crypto mining cases. Since the start of 2025, 58 incidents of unauthorized electricity use for bitcoin mining have been identified. The total damage exceeded 650 million rubles, with 76 million rubles linked directly to Dagestan.

The company stressed that unlicensed mining farms place heavy loads on the power grid, causing transformer failures and fires.

Situation in other Russian regions

From January to August, Rosseti North Caucasus stopped 80 cases of electricity theft related to cryptocurrency mining. In Ingushetia, 14 farms caused more than 475 million rubles in losses. Karachay-Cherkessia recorded five violations, North Ossetia three, and Stavropol one.

Some of these cases led to criminal investigations. Experts warn that illegal crypto mining in Russia causes massive economic losses and threatens energy infrastructure.

Government restrictions on mining

To combat energy shortages, the Russian government has banned bitcoin mining in 10 regions, including Dagestan, Ingushetia, Chechnya, Kabardino-Balkaria, North Ossetia, and Karachay-Cherkessia.