Russia Hits All-Time High in Electricity Theft—Crypto Miners Go Rogue

Underground crypto mining operations in Russia are draining power grids like never before—turning electricity theft into a booming shadow industry.

How bad is it? The Kremlin's seeing record-breaking unauthorized usage as miners bypass legal channels to fuel their rigs. No official numbers yet, but insiders whisper this could be the most brazen energy heist yet.

Meanwhile, traditional investors are left wondering: why bother with regulated markets when you can just steal your way to ROI?

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.

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