Two Illegal Crypto Farms Shut Down in Dagestan

Law enforcement and energy officials in Dagestan uncovered two illegal crypto mining farms in the village of Maydanskoye. The facilities operated in the Untsukul district. A total of 42 cryptocurrency mining devices were seized. Combined power capacity reached approximately 147 kilowatts.
According to the regional energy ministry, the equipment was connected to the power grid without a formal supply contract. Electricity was consumed outside official metering systems. Such unauthorized connections increase infrastructure risks and grid instability.
Police confiscated the mining hardware. The devices were sent for examination. Authorities are investigating the circumstances and potential financial damage.
Pattern of Illegal Mining Activity
Officials noted that local residents often report suspicious activity. Common indicators include:
- constant equipment noise
- excessive heat inside buildings
- unusually high electricity consumption
- unauthorized grid connections
Earlier this year, authorities discovered another warehouse containing 68 mining rigs in the same district. Investigators estimated damages at over 1.2 million rubles.
In November, energy inspectors seized 160 devices across 21 illegal mining farms. Preliminary damage exceeded 6 million rubles. These repeated cases highlight ongoing pressure on the regional power grid.
Rising Enforcement in Crypto Mining
Interest in Bitcoin mining remains strong. However, high electricity tariffs reduce legal profitability. Some operators attempt to bypass official metering systems to cut costs.
Regional authorities have increased monitoring efforts. Regular inspections and cooperation between police and energy companies help identify violations.
The shutdown of two illegal crypto farms demonstrates intensified enforcement. Illegal cryptocurrency mining continues to pose financial and infrastructure risks. Authorities signal that similar operations will face stricter oversight in the future.
