TechFlow reported on September 26, citing Cryptonews, that the government of Russia's Republic of Dagestan issued an announcement stating that local law enforcement and energy officials have jointly cracked down on illegal cryptocurrency mining activities, uncovering an underground crypto mining facility in the capital city of Makhachkala.
According to a message posted by the head of the Dagestan Cabinet via Telegram, law enforcement discovered 17 cryptocurrency mining devices buried several meters underground in the Sergokalinsky District of Makhachkala. Illegal miners have begun constructing underground mining sites and mobile mining units across multiple locations in Dagestan to evade regulation. These unauthorized operations caused a fire at the 110-kilovolt Novaya substation, resulting in multi-day power outages in parts of the capital. The government plans to allocate approximately 3 billion rubles (about $32.5 million) to repair damaged energy infrastructure.
The Dagestan government is working closely with Dagenergo, the North Caucasus branch of state-owned power supplier Rosseti, to combat illegal mining activities. Dagenergo confirmed that the substation fire was caused by a sudden surge in electricity consumption.
