Russian security forces have seized more than 200 cryptocurrency mining rigs from an illegal "farm" in Ingushetia after the region suffered a major power outage.

Cryptocurrency Mining in Ingushetia
The growing cryptocurrency mining activity in the North Caucasus, especially in Ingushetia, has raised concerns about the stability of the power grid. In response, Moscow has banned cryptocurrency mining in the region from January 1, 2024. However, despite the ban, many "farms" are still operating underground, putting great pressure on the local power supply.

According to a recent study, electricity consumption in Ingushetia has skyrocketed by 40.8% by 2024. Electrical engineers warn that if this trend continues, the risk of blackouts and accidents in the power grid will increase.

FSB Raid and Seized Results
The Russian Federal Security Service (FSB), in coordination with the Ministry of Internal Affairs' Main Directorate for the North Caucasus Federal District, conducted a raid on a non-residential area in the village of Kantyshevo, Nazran District.

At the scene, officers discovered hundreds of cryptocurrency mining devices and determined that the operators of the "farms" were engaged in large-scale electricity theft. This activity overloaded the local power grid, leading to numerous sudden power outages affecting residents of the area.

The FSB said that more than 200 mining devices were seized and the investigation is ongoing. The FSB spokesperson said:

“Illegal mining farms not only cause millions of rubles in losses, but also threaten the stability of the energy system. We will take strong measures to crack down on this activity.”

Consequences and Penalties for Violators
The investigative agency said that the operators of these mining farms could face criminal charges related to electricity theft and violating energy regulations. If convicted, they could face large fines and even prison sentences.

Meanwhile, Russian authorities continue to maintain a ban on cryptocurrency mining in Ingushetia and many other regions, including the territories of Ukraine controlled by Moscow. The ban is in effect until March 15, 2031, in order to ensure energy security and minimize related risks.

With tighter government oversight, illegal cryptocurrency mining in Russia may face more hurdles in the coming months.