Unprecedented Crypto Mining-Related Electrical Theft Reaches New Heights in Russia
Ingushetia, a region in Russia, is taking decisive action against illegal crypto mining as part of a national effort to address the issue and safeguard regional energy security. The ban on cryptocurrency mining, enforced from January 1, 2025, until March 15, 2031, is aimed at preventing electricity theft linked to these operations and preserving the power grid from damage [1][2][5].
The crackdown has seen several enforcement measures being implemented. Authorities have conducted inspections and on-site raids, seizing over 450 mining hardware units in towns like Nazran, Karabulak, Sunzha, and Kantyshevo [1]. The regional utility, Ingushenergo, has deployed smart meters with power-limiting features to prevent unauthorized electricity use [1]. A dedicated hotline for anonymous reporting of suspicious activity has also been established [1].
Power providers are using drones equipped with thermal imaging cameras to detect illegal mining operations [2]. Rosseti, the national power group, blocked over 130 unauthorized connections in 2024 [1]. Proposals for new legislation allow authorities to seize cryptocurrency assets from illegal miners, making such activities unprofitable and increasing regulatory control [3].
Despite the ban, illicit mining operations continue, straining the aging grid infrastructure and contributing to outages and voltage drops affecting residents [1][2]. In March 2025, a government decree allowed mining in regions where it was banned, provided miners use their own electricity supply [4]. However, Ingushetia remains under the winter ban under these conditions.
The issue requires collaboration between the utility company, law enforcement, and the community, according to Rosseti North Caucasus branch staff. Last year, grid outages and system overloads in the North Caucasus and elsewhere were linked to unauthorized mining rigs. The unaccounted electricity use caused damage exceeding 356 million roubles to the regional power grid [1].
Officials warn that unauthorized power connections for mining pose a direct threat to regional energy security. More than 94% of the stolen energy, approximately 35.4 million kWh, has been traced to four illegal cryptocurrency mining facilities [6]. These operations are responsible for causing around 347.5 million roubles of damage to the power grid [6].
The efforts to address illegal mining are part of a national crackdown aiming to prevent further damage to ageing grid infrastructure and curb illicit mining practices [7]. The ban covers ten regions where illicit energy use has peaked in recent years. The ban is a significant step towards protecting the energy security of the region and ensuring a stable power supply for its residents.
- The regional authorities in Ingushetia, in an effort to safeguard financial stability and regional energy security, have enforced a ban on crypto mining from January 1, 2025, to March 15, 2031, to prevent electricity theft, damage to the power grid, and illicit mining operations.
- Amidst the ongoing ban, technology, such as drones equipped with thermal imaging cameras, is being utilized by power providers to detect and curb illegal crypto mining activities.
- In the face of growing concerns related to crime and justice, including the strain on aging grid infrastructure and outages attributed to illegal crypto mining, there is a pressing need for collaboration between law enforcement, utility companies, and the community to combat these illicit practices and ensure a stable and secure energy supply.
