According to BlockBeats, on September 26, the government of Dagestan, Russia, announced a joint operation by local law enforcement and energy officials to combat illegal cryptocurrency mining activities. The operation led to the discovery of an underground cryptocurrency mining facility in the capital city of Makhachkala.
The Dagestan Cabinet of Ministers reported via Telegram that law enforcement officers found 17 cryptocurrency mining devices several meters underground in the Sergokalinsky district of Makhachkala. To evade regulation, illegal miners have been setting up underground mining farms and mobile mining units across Dagestan. These illicit activities have caused significant disruptions, including a fire at the 110 kV Novaya substation, which resulted in power outages in parts of the capital for several days. The government has allocated approximately 3 billion rubles (around 32.5 million USD) to repair the damaged energy infrastructure.
The Dagestan government is working closely with the state-owned power supplier Rosseti's North Caucasus branch, Dagenergo, to tackle illegal mining operations.