Authorities Seize Over 1,500 Crypto Miners in Dagestan Crackdown – Bitcoin News

Law enforcement and other authorities in Dagestan have shut down two illegal crypto farms and seized more than 1,500 miners. The government agencies of the republic, considered one of the capitals of Russia’s underground coinage, conduct regular raids on these facilities.

Dagestan’s Crypto Miners Charged With “Illegal Entrepreneurship”

Officials from the Ministry of Interior and Federal Security Service of Dagestan have discovered a large crypto mining farm in Makhachkala, the capital of the Russian republic, TASS news agency reported. A press release details that law enforcement officers have seized 1,476 devices producing digital currency.

The department added that the owners of illegal facilities have also been servicing other miners, including installing mining equipment, connecting them to the grid and providing security. Experts are now working to determine the market value of the confiscated mining equipment and the amount of electricity consumed.

The law enforcement officers who raided the crypto farm further stated that they were gathering evidence to charge the operator under Art Part 2. Article 171 of the Criminal Code of the Russian Federation, “Illegal Entrepreneurship” and Art Part 2. 165, “Property damage through deception or abuse of trust.”

Over the past few years, Dagestan has become a hotspot for illegal and household crypto mining, as well as Russian regions that keep electricity prices low, such as Krasnoyarsk Krai and Irkutsk Oblast.As a result, they suffered power failure Due to malfunctions, especially in residential areas where the electrical network cannot handle overload.

In another case, local grid operator and distributor Rosseti Severniy Kavkaz recently discovered 95 rigs minting cryptocurrency at the facilities of the Republic’s water company Мahachkala Vodokanal. The hardware is installed in the metal container of the Vuzovskoe Ozero pumping station.

The crypto farm has a power generation capacity of 260 kilowatts, and its illegal electricity consumption exceeds 4.5 million kilowatt-hours worth more than 26 million rubles (over $400,000).according to a announcement The farm, designed by Rosseti, was set up by a resident of Dagestan’s capital in collusion with employees of the water company.

Authorities in Moscow have been taking steps to regulate crypto mining as a commercial activity, where Russia has certain advantages, such as cheap energy and favorable climatic conditions.Lawmakers in the State Duma are currently reviewing a new bill Tailored to achieve this goal. Meanwhile, in an effort to curb the use of home electricity for mining, Russia’s antitrust agency is proposing higher electricity bills for those who mine at home.

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Do you expect Russian Dagestan authorities to continue cracking down on cryptocurrency miners? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

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