Illegal Bitcoin Mining in Ingushetia Causes $3.8M Damage

Authorities in Ingushetia report over 177 cases of illegal crypto mining. Four major farms consumed 94% of the stolen power. More than 450 mining rigs were confiscated by police.

Massive Power Theft by Illegal Mining Operations

Illegal cryptocurrency mining in Russia’s Republic of Ingushetia caused losses of over 347.5 million rubles ($3.8M) in the first half of 2025. According to Rosseti North Caucasus, 177 unauthorized mining incidents were uncovered between January and June.

The total unaccounted electricity usage was 37.5 million kWh. Shockingly, 94% of that power was consumed by just four underground mining farms, pointing to large-scale, organized operations.

Police confiscated over 450 mining devices from illegal facilities, highlighting the scale of the problem.

Mining Ban and New Regulations Take Effect

Although the Russian government banned crypto mining in Ingushetia and Dagestan on January 1, illegal operations persist, according to local energy authorities.

Elsewhere in Russia, mining is legal but only under government supervision. Companies and individual entrepreneurs must register with the Federal Tax Service (FTS). Private users can mine up to 6,000 kWh per month.

As of July 30, new rules require data center operators to report miner information directly to the FTS. This move aims to strengthen enforcement and prevent future large-scale electricity theft tied to underground mining.