Since early 2025, more than 100 illegal crypto mining farms have been discovered in the North Caucasian Federal District, according to the company Rosseti North Caucasus. The total damage caused to power grids has exceeded 656 million rubles, while cryptocurrency mining is officially banned in the North Caucasus republics until spring 2031.
Scale of Illegal Mining in the North Caucasus
Company data shows that the uncovered network of underground farms is widespread: over 100 sites have been counted, causing significant damage to power supply systems. The ban on cryptocurrency mining in the republics is in effect until spring 2031, yet this has not stopped unauthorized connections and electricity theft bypassing meters.
Regional Distribution of Illegal Farms
The distribution across regions is uneven: Dagestan leads in number of farms, while Ingushetia ranks second in total damage. Below are the exact figures released by the energy company.
- Dagestan: 79 farms, damage of 89.5 million rubles; more details on the situation in the region can be found in the article illegal mining in Dagestan.
- Ingushetia: 14 farms, damage of 455.5 million rubles.
- Karachay-Cherkessia: 5 farms, damage of 104.1 million rubles.
- Stavropol Krai: 2 farms, damage of 1 million rubles; North Ossetia: 2 farms, damage of 390 thousand rubles; Kabardino-Balkaria: 1 farm, damage of 5.8 million rubles; a detailed analysis of the shutdown of an underground farm in the region is available in the article farm shutdown in Kabardino-Balkaria.
Government Measures Against Illegal Mining
At a Strategic Development Council meeting, Deputy Prime Minister Alexander Novak announced the government’s plans to establish both administrative and criminal liability for violations related to cryptocurrency mining. The company’s press release emphasizes that the main issue remains unauthorized connections and meter bypassing, which cause material damage to the power grids.
Why This Matters
For miners operating one or several devices, this news has practical implications: increased inspections and tougher measures mean heightened attention from regulators and energy companies toward illegal connections. Even if you comply with the republics’ bans, the scale of violations in the region raises the risk of selective inspections and conflicts with network organizations.
Beyond the direct risk of criminal or administrative penalties, illegal connections put extra strain on power grids and can lead to frequent outages and claims from energy providers. This is especially critical if you operate up to a thousand devices and depend on stable electricity supply.
What to Do?
- Verify the legality of your connection: do not connect to networks bypassing meters or without a contract with an electricity supplier.
- If you have doubts about the legality of your equipment operation, suspend mining and contact the energy company to clarify your connection status.
- Document the purchase and placement of your equipment and consult a lawyer if needed — official statements already mention plans to tighten liability.
- Follow local energy company announcements and regional news: some republics enforce special bans and conduct active raids to detect farms.
FAQ
Is mining banned in the North Caucasus? Yes, cryptocurrency mining is prohibited in the North Caucasus republics until spring 2031.
Where were the most farms found? The largest number of illegal farms was detected in Dagestan — 79 sites causing 89.5 million rubles in damage.
Will there be new penalties? Deputy Prime Minister Alexander Novak announced plans to introduce administrative and criminal liability for mining-related violations.
