Illegal crypto mining operators leave Tajikistan to pick up $3.52 million bill

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Tajikistan seeks compensation for losses caused by unauthorized Bitcoin mining activities. The nation’s Attorney General, Khabibullo Vokhidzoda, revealed that over $3.52 million in damages were incurred during the first half of 2025 due to these operations.

During a media briefing, the Attorney General explained that the losses stem from illicit electricity consumption by miners, with the government reimbursing power companies for the deficit.

“Individuals are bringing in mining machinery from overseas and conducting unauthorized cryptocurrency extraction,” Vokhidzoda stated. He noted that four to five criminal investigations linked to mining hardware usage have been initiated against suspects.

Tajikistan reports over $3.52 million in losses from illicit crypto mining

While Tajikistan has not established a clear regulatory position on digital currencies, numerous citizens have engaged in cryptocurrency extraction. Authorities have reported annual shutdowns of mining operations in homes and commercial spaces, imposing penalties on those responsible.

Additionally, investigations indicate that most operations exploited unauthorized and unpaid power sources. Since January, over 190 criminal cases have been launched concerning unlawful electricity consumption.

Although some cases involve non-mining offenses, the majority are tied to cryptocurrency extraction. More than 3,988 people have faced charges for unauthorized energy use, with outstanding payments totaling approximately $4.26 million. Cryptocurrency mining’s resource-intensive nature demands high-performance computing systems and continuous internet access, resulting in power costs beyond the reach of typical residential miners.

Vokhidzoda’s statements follow disclosures from the Sughd regional prosecutor’s office, which filed seven cases against individuals and confiscated 135 mining rigs operating within residential properties. Prosecutors estimate these activities caused damages exceeding $30,000.

Kazakhstan implements measures to curb mining’s strain on power infrastructure

Kazakhstan has joined Tajikistan in combating unauthorized power consumption for cryptocurrency extraction. The country’s Financial Monitoring Agency and National Security Committee recently collaborated to dismantle illegal mining operations.

Investigators found that staff at a regional energy firm diverted over 50 megawatt-hours (MWh) of electricity intended for households and businesses to mining enterprises over two years—equivalent to powering a city of 50,000–70,000 residents.

Officials valued the stolen electricity at roughly $16.5 million. The operation’s mastermind reportedly used profits to acquire two residential properties and four cars, all seized under court order. While cryptocurrency mining remains legal in Kazakhstan, new regulations restrict mining facilities to procuring no more than 1 MWh of energy exclusively from state-authorized suppliers. These rules aim to mitigate strain on the power grid from an industry that expanded rapidly after China’s 2021 mining ban made Kazakhstan an attractive alternative due to low costs and variable enforcement. “Mining activity surged here after China expelled miners in 2021,” observed Digiconomist founder Alex de Vries.

Source: cryptonews.net

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