Bitcoin News Today: Kazakh Authorities Shutter Illegal Bitcoin Mine Siphoning 50 MWh Power

Kazakh authorities have dismantled a large-scale illegal Bitcoin mining operation in East Kazakhstan Oblast, which had siphoned enough electricity to power a mid-sized city. The investigation revealed that utility company insiders colluded with the operators to divert energy away from hospitals, factories, and households to secret mining sites. Officials estimate the stolen electricity totaled over 50 megawatt-hours, valued at approximately 9 billion tenge ($16.5 million) [1]. The illicit profits were allegedly used to purchase luxury properties and vehicles in the capital, which have now been seized pending court proceedings [1].

Kazakhstan became a prominent hub for cryptocurrency mining after China banned the industry in 2021, pushing operators overseas. While the influx initially boosted the economy, it soon overstressed the national grid. In response, the government introduced stricter rules, including mandatory electricity purchases through a state-run platform and a limit of one megawatt-hour per transaction [1]. Despite these measures, the recent operation demonstrates the ongoing challenges in controlling illegal mining, which strains energy infrastructure and risks destabilizing essential services.

The Kazakh crackdown is part of a broader regional trend as governments step up enforcement against unregulated mining. In Russia, regulators have established a national registry for mining equipment and pledged stronger oversight of underground operations. Meanwhile, France is exploring innovative strategies, such as using surplus nuclear power for regulated Bitcoin mining [1]. These developments highlight the growing global effort to balance the economic opportunities of crypto with the need to protect energy resources and public services.

The East Kazakhstan case serves as a clear warning that uncontrolled mining can have significant consequences for public infrastructure and energy security. As enforcement measures intensify, it remains to be seen whether such actions will effectively curb illegal activity and stabilize the energy grid. For now, the Kazakh government’s response signals a more determined approach to ensuring that the benefits of cryptocurrency mining are realized without compromising national interests [1].

Source:

[1] Massive Bitcoin Mining Bust in Kazakhstan Drains City-Sized Power Supply, https://coindoo.com/massive-bitcoin-mining-bust-in-kazakhstan-drains-city-sized-power-supply/