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Market News

Russia Sees Record High Electricity Stealing for Crypto Mining

Written By:
Luqman

Reviewed By:
Gopal Solanky

Last updated: August 5, 2025 2:50 PM
Published August 1, 2025 6:20 PM
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Last updated: August 5, 2025 2:50 PM
Published August 1, 2025 6:20 PM
Russia Sees Record High Electricity Stealing for Crypto Mining

In the first half of 2025, the Ingushetia authorities in Russia uncovered 177 cases of unaccounted electricity use, amounting to 37.5 million kilowatt‑hours. That consumption caused damage exceeding 356 million roubles to the regional power grid.

More than 94% of that stolen energy, approximately 35.4 million kWh, equivalent to around 347.5 million roubles, has been traced to four illegal cryptocurrency mining facilities. Investigators acted in towns such as Nazran, Karabulak, Sunzha and Kantyshevo, seizing over 450 units of mining hardware.

Illegal Mining Farms Behind Most Power Theft

Officials warn that unauthorised power connections for mining pose a direct threat to regional energy security. Grid overloads and voltage drops have led to sudden outages and low supply levels for residents. Rosseti North Caucasus branch staff emphasised that resolving the issue requires collaboration between the utility company, law enforcement and the community.

To counter the theft, Ingushenergo has launched inspections and equipment upgrades. This includes on-site raids, use of meters with power-limiting features as well as outreach to residents about penalties for energy theft and illegal mining. The region has also set up a dedicated hotline for anonymous reporting of suspicious activity.

Russia has banned cryptocurrency mining in Ingushetia between 1 January 2025 and 15 March 2031. This prohibitory measure covers ten regions where illicit energy use has peaked in recent years. The crackdown aims to prevent further damage to ageing grid infrastructure and curb illicit mining practices. 

These latest events follow broader national efforts to address illegal crypto mining. Last year, grid outages and system overloads in the North Caucasus and elsewhere were linked to unauthorised mining rigs. The national power group Rosseti blocked over 130 unauthorised connections in 2024, with over 40 active cases under investigation.

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Luqman Abdulkabir- Crypto Journalist at The Crypto Times
By Luqman
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Luqman Abdulkabir is a Crypto News Writer with 5 years of experience covering cryptocurrencies, consumer technology, AI, gaming, and software. He holds a Bachelor of Science in Materials Science and Engineering and also has a Digital Marketing Certification, giving him a strong mix of technical and content expertise. Luqman focuses on breaking down complex topics and trends in the crypto space to keep readers informed and up to date.
Gopal Solanky - Crypto Research Analyst at The Crypto Times
By Gopal Solanky Sr. Crypto Journalist
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Gopal Solanky is a Research Analyst and Reporter with over 5 years of experience in DeFi, blockchain, crypto, IT, and financial markets. With a Bachelor's in Computer Applications, he brings a strong technical foundation to his analysis and reporting. Gopal focuses on breaking down complex topics for both seasoned investors and curious readers. His work has been referenced by publications like Business Insider and Vulture.com, highlighting his contributions to industry stories around topics like Huwak Tuah Memecoin and the FTX collapse.

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