cryptomining

A large-scale crackdown on unauthorized cryptocurrency mining is underway in southwestern Russia. More than one hundred illegal mining operations have been uncovered this year across the North Caucasus, causing multimillion-dollar losses to regional energy providers.

Dagestan at the Center of the Crackdown
The republic of Dagestan has become the biggest hotspot, with 79 illegal mining farms discovered — over 80% of all identified sites in the region. According to the regional branch of Rosseti, these operations caused damages exceeding 89.5 million rubles (about $1.1 million).

Another 14 mining setups were found in nearby Ingushetia, where financial losses surpassed 455 million rubles (about $5.7 million). Smaller clusters of illegal miners were also found in Karachay-Cherkessia, North Ossetia–Alania, and Stavropol Krai.
Investigators discovered that many of these operations were connected to the grid illegally, bypassed electricity meters, or interfered with proper metering systems. Energy companies warn that such setups overload infrastructure not designed for high industrial consumption, causing short circuits, outages, and reduced reliability of electricity supply.

A Growing Problem
Rosseti reports that illicit miners are becoming increasingly sophisticated. Some operations are hidden in underground facilities, abandoned buildings, improvised mobile units — and in several cases even underwater installations designed to mask heat and noise.

Dagestan alone has recorded 147 cases of illegal mining since 2023, with three-year losses exceeding 277 million rubles (nearly $3.5 million).

Rising Energy Consumption Forces Stricter Measures
Russia officially legalized crypto mining in late 2024 with hopes of leveraging its abundant energy resources and cold climate. However, the rapid expansion of both legal and illegal mining operations has strained electrical grids in several regions.

Areas such as Tatarstan, Buryatia, Zabaykalsky Krai, and Khabarovsk Krai recently reported record-high electricity consumption, prompting temporary or seasonal mining bans.
Moscow is now considering criminal penalties for illegal mining and administrative fines for minor violations, aiming to bring the sector out of the grey economy and reduce stress on regional grids.

Drones and Smart Meters: The Hunt Continues
Authorities are increasingly relying on advanced tools to locate hidden mining farms. Smart meters help detect unusual consumption patterns, internet service providers assist in tracking suspected operations, and drones equipped with night-vision systems are used to locate remote or mobile setups.

Just last month, officials intercepted a mobile crypto-mining truck after locating it with a night-vision drone.

#russia , #CryptoMining , #DigitalAssets , #CryptoNews , #crypto

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Why Bitcoin Miners Are Becoming The New Corporate Whales 🐳
A massive shift is underway: Bitcoin miners now control 12% of the world's corporate $BTC treasuries, holding ~127,000 BTC! This is bigger than the entire corporate sector (excluding Strategy).

Miners like Marathon ($53k+ BTC) are leading the charge by holding production, signaling:

Strategic Asset: Treating $BTC as a long-term reserve, not just operational cash flow.

Maturity: Financial maturity allows them to absorb costs without immediate sales.

This growing cohort of HODLers could tighten supply and reduce daily sell-offs. Keep an eye on miner balance sheets!

What's the next corporate sector to pivot to a $BTC treasury strategy? Share your thoughts! 👇

#Bitcoin #BTC #HODL #CryptoMining #Web3

Tajikistan is drawing global attention with a remarkably strict crackdown on illegal crypto miners. As the country prepares for another harsh winter and recurring electricity shortages, the government has decided to intervene against those who exploit state-supplied power to mine digital assets — without paying a single somoni for it.
The new legislation introduces not only substantial financial penalties but also real prison sentences. Authorities believe that such harsh measures are necessary to stop the uncontrolled rise of illegal “crypto farms,” which, according to state officials, are responsible for widespread power outages and serious disruptions to the nation’s energy stability.

Severe Measures: Fines, Prison Sentences, and Full Criminalization of Illegal Mining
The Tajik government has officially approved amendments to the criminal code that, for the first time, classify the “unauthorized use of electricity for the production of virtual assets” as a criminal offense. These steps aim to put an end to massive power losses in regions most affected by underground mining operations.
According to the new provisions, miners who secretly connect to the power grid or bypass official procedures will face:
Fines ranging from 15,000 to 37,000 somoni (USD 1,600–4,000) for individualsUp to 75,000 somoni (over USD 8,000) for organized groupsPrison terms of 2–5 years for group-based activitiesUp to 8 years in prison for cases involving “especially large-scale” energy theft
The severity of the penalties reflects the scale of the problem. According to Prosecutor General Habibullo Vohidzoda, illegal crypto farms have caused significant electricity shortages in multiple cities and districts, forcing authorities to impose rolling power restrictions. These conditions have, in turn, created fertile ground for further criminal activity and economic damage.

“Illegal mining has caused over 32 million somoni in losses,” says prosecutor
The Tajik prosecutor’s office has documented dozens of cases in which crypto mining farms were found directly connected to the national grid without authorization. Investigators state that these operations have caused:
Financial damage of 32 million somoni (around USD 3.5 million)Severe stress on the national power network, especially during winter shortagesViolations of customs and tax regulations, as some mining equipment was allegedly imported illegally
According to Vohidzoda, the unregulated expansion of crypto mining is linked to a broad array of offenses — from electricity theft to money laundering. The new legal amendments are therefore also designed to prevent tax evasion by individuals and companies engaged in mining activities.
The changes will take effect once signed into law by President Emomali Rahmon.

Crypto Miners Under Pressure Across the Region: Winter, Power Deficits, and Strict Government Actions
Tajikistan is not the only Central Asian nation tightening its grip on the crypto mining sector this year. After China banned crypto mining, the region became a major global hub for miners — which, however, led to dramatic increases in power consumption.
Kazakhstan
Following widespread blackouts, the country introduced strict licensing rules, higher energy tariffs, and shutdowns of unauthorized facilities. Some of these measures have recently been relaxed, but regulation remains heavy.
Russia
Although Russia only legalized crypto mining through new legislation in 2024, more than 10 regions with high concentrations of mining operations have imposed full or partial bans. The government is also preparing to criminalize illegal mining.
Kyrgyzstan
Tajikistan’s northern neighbor shut down all mining operations within its borders last month, citing worsening power shortages during the winter season.

Conclusion: Tajikistan Launches One of the Toughest Crackdowns on Illegal Mining in Asia
Tajikistan has chosen to confront its energy crisis through the full force of the law. New prison sentences, heavy fines, and explicit criminalization of unauthorized mining aim to protect the country’s fragile power infrastructure. At the same time, this move sends a clear message across the region: the era of wild, unregulated crypto mining is rapidly coming to an end.

#CryptoMining , #blockchain , #CryptoNews , #DigitalAssets , #CryptoRegulation

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The Russian government is preparing to introduce criminal liability for illegal cryptocurrency mining, stepping up its efforts to bring the sector under official regulation and reduce its strain on the national power grid. This move is part of a broader campaign to curb unauthorized crypto operations, especially those that rely on stolen electricity.

Crypto mining under legal scrutiny
According to Deputy Prime Minister Alexander Novak, Moscow is pushing forward a comprehensive legal framework to regulate the circulation of digital currencies, introduce administrative penalties for minor breaches, and enforce criminal prosecution for unauthorized mining activities. These reforms are expected to form the backbone of Russia’s strategy to fully regulate digital asset usage in the national economy by next year.
In addition, the government will tighten penalties for illegal consumer lending, a domain often tied to crypto-related fraud.

A push to combat money laundering
As part of the broader initiative, Russia’s central bank plans to require banks to link user accounts with personal tax identification numbers. This is designed to help identify so-called “money mules” (referred to as “droppers” in Russian slang), who are often exploited to move funds between fiat and cryptocurrencies during money-laundering schemes.
CBR Vice Governor Olga Polyakova confirmed that these data links are essential for the launch of the upcoming "Antidrop" platform, expected to go live in 2027.

Illegal mining still widespread despite crackdowns
In 2024, Russia formally legalized crypto mining, making it the first officially regulated crypto-related activity in the country. The law allows individuals, entrepreneurs, and businesses to participate. Individuals can mine legally without registration if their monthly power usage stays under 6,000 kWh, but anything beyond that requires mandatory registration with the Federal Tax Service.
Despite this legal path, less than one-third of mining operations have reportedly registered with the government. Both licensed and unlicensed miners have been blamed for power outages, particularly in regions with high crypto farm densities.

Authorities ramp up enforcement
Several regions in Russia have temporarily or permanently banned mining due to energy grid overloads. Still, many operators continue to run illicit mining farms, often tapping into stolen power lines and defying state-imposed restrictions.
Joint raids by energy companies, police, and agents from the Federal Security Service (FSB) are becoming increasingly common. Enforcement teams are now using smart electricity meters, internet traffic monitoring, and drones with thermal cameras to locate illegal mining sites.
At the same time, crypto miners are getting more inventive. Law enforcement has discovered mobile mining rigs in the back of trucks, and abandoned industrial or agricultural buildings repurposed as hidden mining hubs that still offer network access and electricity.

#CryptoMining , #russia , #crypto , #Regulation , #CryptoCrime

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Author: @Field_Architect
Section: #DePIN #RealWorldTech #CryptoMining #PassiveIncome
We are used to thinking of crypto as something ephemeral. Numbers on a screen.
But while we trade memes, smart money is buying up the Hardware.
The next big narrative is DePIN (Decentralized Physical Infrastructure).
This is when blockchain enters the real world.