Wed Sep 25 01:30:44 UTC 2024: ## Dagestan Cracks Down on Underground Crypto Mining Farms
**Makhachkala, Russia** – The southern Russian Republic of Dagestan is facing a growing problem with illegal crypto mining operations, leading to electricity shortages and even blackouts. Authorities have recently discovered numerous underground mining farms, prompting the regional prime minister to call for stricter enforcement.
According to Reuters, Dagestan’s Prime Minister Abdulmuslim Abdulmuslimov expressed concern over the increasing sophistication of illegal mining operations, highlighting their ability to evade detection by establishing hidden facilities. One such discovery involved a makeshift underground cavern in the Sergokalinsky district, housing over 15 mining machines.
This follows the recent legalization of crypto mining in Russia, which is set to take effect on November 1, 2024. The new legislation aims to regulate the industry and curb illegal activities. However, the discovery of these clandestine operations demonstrates the challenges authorities face in controlling the sector.
The crackdown on illegal crypto mining has become increasingly prevalent in Dagestan, with police raids on mining centers becoming more frequent since late 2023. The region is believed to have the highest rate of electricity theft in Russia, primarily attributed to the high energy consumption of crypto mining operations.
The prime minister attributes recent power outages, including a fire at a substation that left several districts without electricity, to the strain placed on the grid by illegal mining farms. He has ordered law enforcement to intensify their efforts in combating these operations, emphasizing the need for stricter measures to protect the region’s energy infrastructure.
First Piper 