Moscow, Thursday, September 26, 2024- Authorities in Dagestan, Russia, have uncovered illegal subterranean crypto mining farms stealing power from the national grid, exacerbating the region’s ongoing energy issues.
According to TASS and a statement from Dagestan’s Cabinet of Ministers, police and energy officials raided a clandestine mining facility in Makhachkala, the republic’s capital. Seventeen crypto mining devices were discovered in the city’s Sergokalinsky District.
Reuters said that the “Dagestan’s government had released footage showing investigators inspecting a crypto mining installation in a makeshift underground cavern with dozens of fans to cool the computers”.1
The miners, dubbed “energy thieves” by officials, have increasingly taken their operations underground to avoid detection. These illegal activities have caused significant energy disruptions in the region. Earlier this month, a fire at the 110 kV Novaya substation, linked to illegal crypto mining, left parts of the capital without power for several days.
Dagestan’s government is working closely with Dagenergo, the North Caucasus branch of the state-owned power provider Rosseti, to address the crisis. The government announced plans to invest 3 billion rubles ($32.5 million) in repairing damaged energy facilities. In response to the rising threat posed by illegal crypto miners, officials have emphasized the need for more stringent enforcement measures.
The Deputy Prime Minister of Dagestan called for a stronger focus on combating these unlawful mining operations, as miners continue to innovate new ways of circumventing the law by installing mobile and underground mining units.
- https://www.reuters.com/technology/russia-some-crypto-miners-go-underground-literally-2024-09-24/[↩]
