Over 100 Illegal Mining Farms Found in the North Caucasus Since the Beginning of the Year

RBK-cryptoPublished on 2025-12-11Last updated on 2025-12-11

Abstract

Since the beginning of 2025, over 100 illegal cryptocurrency mining farms have been discovered in Russia's North Caucasus Federal District, according to "Rosseti Severny Kavkaz." The total financial damage from their operations is estimated at over 656 million rubles. Although cryptocurrency mining is officially banned in the region until Spring 2031, many illegal miners continue to operate by stealing electricity, either bypassing meters or connecting directly to the grid without contracts. The breakdown of discovered farms by region is as follows: 79 in Dagestan (causing 89.5 million rubles in damage), 14 in Ingushetia (455.5 million rubles), 5 in Karachay-Cherkessia (104.1 million rubles), 2 in Stavropol Krai (1 million rubles), 2 in North Ossetia (390,000 rubles), and 1 in Kabardino-Balkaria (5.8 million rubles). Dagestan leads in the number of cases, which the energy company attributes to individuals attempting to generate profit without using their own funds for electricity. In response to the widespread issue, Russian Deputy Prime Minister Alexander Novak announced on December 8th that the government plans to establish both administrative and criminal liability for violations related to cryptocurrency mining.

More than 100 illegal mining farms have been identified since the beginning of 2025 in the North Caucasus Federal District, according to the company "Rosseti Severny Kavkaz" (Russian Grids of the North Caucasus) as cited by TASS. The total amount of damage exceeded 656 million rubles.

Cryptocurrency mining is prohibited in the republics of the North Caucasus until the spring of 2031. However, many illegal miners remain in the regions, stealing electricity by bypassing meters or connecting to the grid directly without contracts.

5 underground farms were discovered in Karachay-Cherkessia (damage of 104.1 million rubles), two in the Stavropol Territory (1 million rubles) and North Ossetia (390 thousand rubles), and one more in Kabardino-Balkaria (5.8 million rubles).

The most significant damage to energy companies was caused by 14 farms in Ingushetia — 455.5 million rubles. The largest number of illegal miners was identified in Dagestan. There, 79 farms were found, which caused damage amounting to 89.5 million rubles.

"Dagestan still leads in the number of illegal mining cases. This is related to attempts by certain citizens to profit without using their own funds," the energy company reported.

On December 8, at a meeting of the Council for Strategic Development and National Projects, Deputy Prime Minister Alexander Novak stated that the government plans to establish both administrative and criminal liability for violations related to cryptocurrency mining. Lawyers told "RBC-Crypto" where the line between administrative and criminal offenses in the field of mining might be drawn.

In Belarus, reasons for blocking crypto exchange websites have been named. What is known.

Bitcoin mining difficulty has fallen for the third time in a row. What this indicates.

The Central Bank has proposed limiting ordinary Russians' right to purchase cryptocurrency.

Related Questions

QHow many illegal mining farms were discovered in the North Caucasus since the beginning of 2025?

AMore than 100 illegal mining farms were discovered.

QWhat is the total amount of financial damage caused by these illegal mining operations?

AThe total financial damage amounted to more than 656 million rubles.

QUntil when is cryptocurrency mining banned in the republics of the North Caucasus?

ACryptocurrency mining is banned until the spring of 2031.

QWhich Russian region suffered the most financial damage from these illegal mining farms?

AIngushetia suffered the most financial damage, with 14 farms causing 455.5 million rubles in damage.

QWhat did the Russian government plan to establish regarding cryptocurrency mining violations, as stated by Deputy Prime Minister Alexander Novak?

AThe government plans to establish both administrative and criminal liability for violations related to cryptocurrency mining.

Related Reads

Moutai Moment: When Liquidity Dries Up, Everyone Huddles Around HYPE and ZEC

In May 2026, a notable sentiment shift is occurring in the crypto market, symbolized by prominent Ethereum advocate David Hoffman selling his remaining ETH. While major assets like ETH and SOL struggle—ETH is down over 50% from its 2025 high—two assets, HYPE and ZEC, are rallying strongly. This divergence mirrors the "core asset crowding" phenomenon seen in traditional markets during liquidity crunches, where capital concentrates in few perceived safe havens. The market faces liquidity pressure, partly due to Bitcoin ETF outflows and stalled narratives for major Layer 1s. In contrast, Hyperliquid (HYPE) attracts capital due to its strong fundamentals as a leading decentralized perp exchange with substantial protocol revenue and a share of USDC reserve yields. Its tokenomics, heavily favoring users, add to its appeal. Meanwhile, Zcash (ZEC) surges as a "privacy beta" play, driven by growing fears over AI-driven deanonymization and quantum computing threats. Endorsements from figures like Arthur Hayes and Multicoin Capital's Tushar Jain, alongside regulatory clarity and ETF expectations, fuel its rise. This crowding poses risks. Similar to the A股白酒 rally that ended when liquidity returned, the current crypto crowding could unravel if macro conditions improve or if positions become too concentrated, leading to a sharp correction. The article concludes by questioning whether investors hold assets out of conviction or inertia and prompts consideration of what the next crowded trade might be.

marsbit10m ago

Moutai Moment: When Liquidity Dries Up, Everyone Huddles Around HYPE and ZEC

marsbit10m ago

Trading

Spot
Futures
活动图片