Authorities seized almost 1,500 crypto mining rigs in Dagestan

In Dagestan, law police and other authorities shut down two illicit crypto farms, seizing over 1,500 mining devices.

Authorities seized almost 1,500 crypto mining rigs in Dagestan

Officers from Dagestan’s Ministry of Internal Affairs and the Federal Security Service discovered a large crypto mining plant in Makhachkala, the Russian republic’s regional capital, Tass said, citing the ministry. According to a news release, law enforcement agents seized 1,476 devices that produce digital currency.

The proprietors of the illegal operation were also providing services to other miners, including installing mining rigs, linking them to the power grid, and providing security, according to the division. Experts are currently attempting to establish the market value of the stolen mining equipment as well as the amount of electrical energy utilized.

Law enforcement officers who seized the crypto farm also stated that they are gathering evidence to prosecute the producers under Part 2 of Art. 171 of the Russian Federation’s Criminal Code, “Illegal business,” and Part 2 of Art. 165, “Causing property damage by deception or abuse of trust.”

Dagestan, along with Russian regions like Krasnoyarsk Krai and Irkutsk Oblast that have cheap energy costs, has been a hotbed for illicit and home crypto mining in recent years. As a result, they have experienced blackouts as a result of power outages, particularly in residential areas where the electrical systems were not prepared to accommodate the increased demands.

In some other example, Rosseti Severniy Kavkaz, the republic’s power grid operator and distributor, recently discovered 95 rigs minting bitcoin at a Mahachkala Vodokanal plant. At the Vuzovskoe Ozero pumping station, the gear was put in a metal container.

Officials in Moscow have been working to legalize crypto mining as a corporate activity, with Russia having some benefits like as cheap electricity and suitable weather. The State Duma is presently considering a new measure that would accomplish this. Meanwhile, the Russian anti-monopoly agency has proposed raising power tariffs for individuals mining at home in an effort to reduce mining with domestic electricity.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Jai Hamid

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