The farm featured 89 machines that strained the local power grid with 24/7 operations.
Law enforcement officials in Dagestan have been hard at work since the calendar flipped to 2025 and a ban on cryptocurrency mining took effect.
The Russian republic is just one region covered by the new law, which is not set to expire until March 31, 2031.
The latest bust of an illegal crypto mining operation happened in the village of Khadzhalmakhi in Levashi, Open Caucasus Media reported. The farm featured 89 machines that strained the local power grid with 24/7 operations, said Arsen Gadzhiev, acting head of energy company Dagenergo.
Financial losses added up to “several million rubles,” and charges were being prepared, per the March 31 report. (For reference, three million rubles is $36,126.)
The week prior, Gadzhiev announced on Telegram that officials had conducted operations in two villages suspected of hosting illegal miners. They turned off the internet with the cooperation of service providers and mobile network operators, per OC Media.
“The results were shocking,” Gadzhiev said. Energy consumption dropped by 3.2 megawatts, indicating about 900 mining rigs were “the reason for the low voltage and frequent power outages.” He noted that 3.2 megawatts is enough to power 1,500 homes, but there were only 849 households in the area.
In January, another illegal mining operation was uncovered. This one had 169 devices.
In 2024, over 30 mining farms — including some in semi-trailers — were raided in Dagestan. TASS, Russia’s state news agency, said 86 million kilowatts were stolen, costing ₽350 million ($4.2 million).
Besides destabilizing energy systems with their massive consumption of power, crypto mines contribute to the production of heat-trapping gases in the atmosphere that are responsible for the rapid warming of Earth. It’s part of a positive feedback loop, as higher temperatures around the globe create a greater need for air conditioning, which often relies on the dirty energy sources at the root of the problem.
It’s essential, of course, to enforce laws that protect people and the environment. Shutting down illegal miners can also ensure steady electricity prices for consumers.
Illegal miners may be unlikely to seek more environmentally friendly ways of breaking the law, but it is possible to thrive in the industry without gobbling up so much power, as Ethereum showed by switching to proof-of-stake mining.
More generally, we will all be better off with the use of clean energy sources such as solar instead of dirty coal, gas, and oil. They are cheaper to use and don’t produce pollution, clearing the path to a cleaner, cooler future.
