Bitcoin News Today: Kazakhstan Cracks Down on Illegal Crypto Mining Using 50 MWh of Stolen Power

Kazakh authorities have revealed that unauthorized cryptocurrency mining operations consumed over 50 megawatt-hours of electricity — an amount sufficient to power a city of 50,000 to 70,000 people. The findings emerged from an investigation into electricity companies illegally supplying power to miners, with the Department of Financial Monitoring (DFM) and the National Security Committee (NSC) uncovering the misuse of nearly $16.5 million (9 billion tenge) worth of energy [1]. The illegal power was reportedly supplied for two consecutive years, bypassing legal requirements that restrict miners to sourcing electricity only during periods of documented surplus [2].

The Digital Assets, Informatization, and Amendments to Certain Legislative Acts (No. 194-VII) mandates that miners purchase electricity exclusively via the Ministry of Energy’s state-run platform. However, several energy suppliers violated this rule by diverting power intended for public and strategic enterprises to mining operations. The illegal profits were used to purchase real estate and vehicles in the capital, which have now been frozen by court order for potential confiscation [1].

Kazakhstan, once a preferred destination for cryptocurrency miners due to low energy costs and a relatively open regulatory environment, is witnessing a shift. The government’s recent crackdown reflects growing concerns over energy consumption and the economic and environmental impact of unregulated mining. The departure of major mining firms, including BTC miner Canaan, signals a broader trend of miner exodus amid increased regulatory and operational uncertainty [2].

The incident highlights the challenges faced by regulators in balancing the economic potential of the cryptocurrency sector with the need to preserve energy security and public access to electricity. As mining operations expand, they risk straining energy grids, increasing costs, and eroding public confidence. Kazakhstan’s response may serve as a precedent for other countries weighing the benefits of hosting large-scale mining against the risks of energy overuse and infrastructure strain [2].

Sources:

[1] Bitcoin.com – [https://news.bitcoin.com/crypto-miners-drained-enough-power-to-light-up-a-city-kazakhstan-cracks-down/](https://news.bitcoin.com/crypto-miners-drained-enough-power-to-light-up-a-city-kazakhstan-cracks-down/)

[2] CryptoRank – [https://cryptorank.io/news/tag/mining](https://cryptorank.io/news/tag/mining)