Security forces discovered an illegal mining farm in Kabardino-Balkaria.

In Chegem, a mining farm operating in defiance of the ban on cryptocurrency mining in Kabardino-Balkaria has been disconnected from the power grid.

As reported by Caucasian Knot, in early December 2025, a large mining farm was discovered in two uninhabited buildings in the village of Stary Cherek, Urvan District. The damage from the illegal mining farm was estimated at 5.8 million rubles. In March 2022, an illegal mining farm consisting of 200 machines was stopped in Kabardino-Balkaria.

Fourteen illegally installed mining devices connected to power grids were found in the city of Chegem in the Chegem District, the regional Ministry of Internal Affairs press service reported on its Telegram channel on January 27.

Police identified the illegal miner as a 32-year-old local resident who, from June to December 2025, had been illegally connecting to the city's power grid to operate his mining farm. "The suspect's actions caused property damage to the electricity supply organization in excess of 2.7 million rubles," the agency reported.

The Chegem District Investigative Committee has opened a criminal case under Part 2 of Article 165 of the Russian Criminal Code (causing property damage by deception or abuse of trust). 1 .

The mining ban is in effect in all republics of the North Caucasus Federal District.

20:38 25.12.2024

Economists assess the effectiveness of the mining ban in the North Caucasus

Mining in the North Caucasus republics, amid low electricity rates, is leading to high loads on the power grid. At the same time, to address the electricity shortage, it is first and foremost necessary to increase energy capacity.

As a reminder, in December 2024, the head of Dagestan, Sergey Melikov, signed an appeal to the Russian government requesting a ban on cryptocurrency mining in the republic, given the growing load on the power grid. According to a Cabinet of Ministers decree, a complete ban on mining has been introduced from 2025 to March 15, 2031, including in Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, and Chechnya.

In April 2021, the Council of Ulema of Ingushetia banned Muslims from buying and selling cryptocurrencies due to the lack of legal guarantees for their owners. Blockchain technologies are permitted under Sharia law, but each cryptocurrency "needs an individual approach," as there are differing opinions among Islamic authorities, Rashit Tugushev, a member of the Council of Ulema of the Muslim Spiritual Directorate of Russia, told the Caucasian Knot.