The number of illegal cryptocurrency mining cases has sharply increased in Russia

Massive cases of illegal connections to networks are recorded in Dagestan, Ingushetia, and Karachay-Cherkessia

Against the backdrop of rising digital asset prices, the first half of 2025 was marked by a surge in crypto-related crimes. According to law enforcement agencies, the total damage from such offenses has already exceeded $2.17 billion.

The main problem has been the theft of electricity for illegal mining. The situation is particularly acute in Dagestan, Ingushetia, and Karachay-Cherkessia, where massive cases of illegal connections to power grids are being recorded. In one recent raid in Karachay-Cherkessia, a mining farm was discovered that consumed 12,000 kilowatt-hours per month—the same amount as a hundred average apartments.

Their number in 2025 has increased many times over due to the lack of control over energy consumption and the ability to install mining farms in villages. But there is also a downside: such miners usually have to buy powerful video cards due to the shortage of professional solutions like ASIC (application-specific integrated circuits).
A crypto specialist from Dagestan, who wished to remain anonymous

At the same time, crypto exchange hacks have become more frequent. In February, attackers stole about $1.5 billion from the Bybit platform, and in June, the Iranian exchange Nobitex was hacked, losing $90 million.

The growth of illegal activity has stimulated demand for equipment. Online electronics stores report a threefold increase in sales of powerful video cards compared to last year. Experts attribute this to the cheaper equipment due to the strengthening of the ruble and the shortage of specialized ASIC miners.

The authorities are already taking countermeasures. In six regions of the North Caucasus, mining is completely prohibited due to the shortage of electricity. A monthly energy consumption limit of 6,000 kilowatt-hours has been set for individuals.

If this limit is exceeded, it is necessary to register in a special register of miners, which is maintained by the Federal Tax Service. “Evaders” will soon face large fines and confiscation of illegally mined cryptocurrency; a corresponding bill is already under development.
Anton Gorelkin, First Deputy Chairman of the State Duma Committee on Information Policy

A bill is currently being developed that provides for serious fines and confiscation of illegally mined crypto assets. Experts warn that without effective countermeasures, the country may face an energy crisis similar to that experienced by Iran and Kazakhstan, where uncontrolled mining led to massive power outages.

Earlier, www1.ru reported on a proposal by deputies to confiscate illegally mined cryptocurrency.

Read more materials on the topic:

The government decided to help illegal miners pay taxes: deputies propose confiscating illegally mined cryptocurrency

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