The Republic of Dagestan in Russia has been combating illicit crypto mining, having uncovered multiple clandestine operations. Abdulmuslim Abdulmuslimov, the Prime Minister of Dagestan, has advocated for stricter restrictions due to the miners’ persistent advancement in concealment techniques.
The prime minister disclosed the discovery of multiple unlicensed mining operations located in subterranean tunnels, rendering them more difficult to identify. A concealed farm in the Sergokalinsky district was revealed, containing more than 15 mining machines cooled by fans.
The government has just authorized cryptocurrency mining, following President Vladimir Putin’s enactment of a law in August 2024 that permits registered entities and individuals to mine legally.
Dagestan has emerged as a focal point for illicit cryptocurrency mining, accompanied by regular enforcement actions against electricity theft. Since late 2023, police operations in the region have escalated, with Dagestan identified as the foremost area for electricity theft associated with mining activities.
Officials suspect that these operations are responsible for significant electrical problems, including a recent fire at a substation that resulted in prolonged power outages in certain areas of the region.
The Prime Minister of Dagestan has called for stricter actions against unlicensed miners, attributing their excessive energy usage to power shortages. Authorities are currently concentrating on locating clandestine mining operations and averting additional disturbances to the region’s electrical supply.
