Dagestan under attack: 52 illegal mining farms uncovered, damage to power grids exceeds 129 million rubles
The scale of shadow mining in Dagestan continues to astonish. Since the beginning of 2026, specialists from Rosseti North Caucasus have identified and eliminated 52 illegal digital asset mining farms in the republic. During operational measures, 968 pieces of equipment used in cryptocurrency mining were seized from violators.
This is not just about administrative violations, but a systemic problem of energy resource theft. Five criminal cases have been opened regarding illegal connections to power grids. Underground operators managed to steal about 2.7 million kWh of electricity, and a court has already issued a verdict in one of the cases. The remaining materials are under investigation in cooperation with law enforcement agencies.
Figures that speak volumes
The total damage inflicted on the region's power grid infrastructure has exceeded 129 million rubles. Meanwhile, specialists from the Dagenergo branch recorded 952 cases of non-contractual electricity consumption, totaling more than 20.1 million kWh. Notably, the share of mining in this stolen volume exceeds 13% — a colossal indicator demonstrating the deep integration of crypto mining into the region's shadow economy.
Energy workers emphasize that electricity theft not only causes financial losses but also poses a real threat to people's lives. Voltage fluctuations caused by overloads lead to household appliance failures, technical disruptions, and fires. The main danger is the risk of severe electrical injury or death, especially in rural areas where grids are often overloaded.
The ingenuity of violators knows no bounds
Dagestan remains one of the most problematic regions for illegal mining. Just in June, energy workers dismantled a farm in the village of Maydanskoye, where 90 devices with a total capacity of about 315 kW were hidden under a false floor and connected to the grid without a contract. Similar schemes operate across the country. In the Irkutsk region, police discovered 12 pieces of equipment in a forest area, camouflaged with netting and connected directly to a power line pole — the damage there exceeded 2.5 million rubles.
Particular attention deserves a case in the Tyumen region, where a resident of a garden plot found a crypto farm on her property, mistaking it for an apiary due to the characteristic housings. The regional police department is conducting a check on this matter.
The logic of violators is simple: electricity costs determine the profitability of mining, so underground operators seek connection points as far from metering as possible. Legal sites lose on cost efficiency. Energy workers, together with police, continue raids, and the number of identified facilities in less than eight months shows that the scale of the problem in the republic persists.
My view: the situation in Dagestan is just the tip of the iceberg. As long as electricity prices for the population remain low and connection control remains insufficient, underground mining will thrive. The region needs not only raids but also systemic changes in tariff policy and digitalization of energy metering. Otherwise, we will watch this arms race endlessly.