Illegal Mining Farm Seized in Dagestan

Authorities in Dagestan discovered an illegal crypto mining farm with 35 devices and 249,000 kWh of unmetered power use. Crypto mining is fully banned in the North Caucasus region until March 2031.

Equipment seized during joint inspection

An illegal cryptocurrency mining operation was uncovered in Dagestan’s Babayurtovsky district by energy provider Dagenergo and Rosseti North Caucasus, with support from local police. The setup was located in a private residence in the village of Babayurt.

Authorities discovered 35 mining devices operating inside the house. Energy specialists recorded unmetered electricity consumption totaling 249,000 kWh. The hardware was confiscated, and documents are now being prepared to determine the owner’s legal liability.

Earlier in Dagestan, two illegal mining farms were uncovered.

Crypto mining banned across North Caucasus

Mining digital assets is strictly prohibited in Dagestan due to electricity constraints and grid instability. The Russian government has implemented a full ban on mining across much of the North Caucasus, effective until March 15, 2031.

This restriction also applies to neighboring regions: Ingushetia, Chechnya, North Ossetia, Kabardino-Balkaria, and Karachay-Cherkessia. Any mining farms detected in these territories are considered illegal and subject to immediate shutdown and enforcement measures.