Russian power engineers have found new ways to spot illegal crypto mining farms in areas with power shortages. In Dagestan, Rosseti and its local branch worked with internet providers to cut internet briefly and measure electricity drops.

The operation detected about 900 mining rigs using 3.2 MW-enough energy for 1,500 homes-even though fewer than 900 families live there.

Dagestan leads illegal crypto mining in the North Caucasus. Despite a winter ban until 2031, many miners operate year-round, avoiding proper electricity payments.

Officials estimate that illegal mining has cost the grid$5 million over three years, causing overloads and losses. Authorities want to expand mining bans and introduce harsher penalties, including possible criminal charges.

Some regions with spare power capacity may allow legal mining, but places like Irkutsk have banned it entirely until 2031. Experts say heavier fines and jail terms could be a stronger deterrent than current minor penalties.

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