Russian local government cracks down on illegal mining activities:
Russian underground cryptocurrency mines caused a fire at a local substation, causing power outages in some areas for several days
On September 26, the Dagestan government of Russia issued an announcement that local law enforcement agencies and energy officials have joined forces to crack down on illegal cryptocurrency mining activities and found an underground cryptocurrency mining site in the capital Makhachkala.
According to a message released by the Dagestan Cabinet Minister via Telegram, law enforcement officers found 17 cryptocurrency mining equipment several meters underground in the Sergokalinsky district of Makhachkala.
In order to evade supervision, illegal miners began to set up underground mines and mobile mining units in many places in Dagestan. These illegal mining activities caused a fire at the local 110 kV Novaya substation, causing power outages in some parts of the capital for several days.
The government will invest about 3 billion rubles (about 32.5 million US dollars) to repair damaged energy facilities. The Dagestan government is working closely with Dagenergo, the North Caucasus branch of the state-owned power supplier Rosseti, to crack down on illegal mining activities.