Chechnya Says It Will Jail Illegal Crypto Miners ‘Like Terrorists’

Crypto Mining Russia
North Caucasus republic will ban crypto mining from January 1, 2025
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Tim Alper
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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Chechnya’s government will treat illegal crypto miners “like terrorists,” and will jail residents found mining tokens like Bitcoin (BTC) and Ethereum (ETH).

The claims came from the Chechnya-based State Duma lawmaker Adam Delimkhanov. The MP was speaking in the wake of a recent decision to ban crypto mining in Chechnya and nine other Moscow-controlled regions.

Delimkhanov said he was speaking on behalf of the Chechen Head of State Ramzan Kadyrov.

Chechnya ‘to Equate Illegal Crypto Mining With Terrorism’

The ban comes into force on January 1, 2025. It will give energy providers, police, and prosecutors new powers to fight illegal miners.

The Chechen Head of State Ramzan Kadyrov with Russian President Vladimir Putin.
The Chechen Head of State Ramzan Kadyrov with Russian President Vladimir Putin. (Source: @KremlinRussia_E/X)

Per Tsargrad TV, Delimkhanov said the ban would help boost the stability of electricity supplies for “ordinary residents” of Chechnya.

The lawmaker said that if illegal crypto mining “leads to problems with electricity in a district, village, or city,” the Chechen authorities will respond quickly.

“Those responsible for this will be subject to severe punishment. We will equate them with terrorists, since their actions harm the whole of society.”

State Duma Lawmaker Adam Delimkhanov

Bitcoin, Ethereum Focus

Crypto industry insiders have told Russian media outlets that most industrial miners (over 90%) focus their efforts on mining Bitcoin.

However, Cryptonews.com has seen evidence that suggests many small-scale home-based miners in the Russian Federation prefer to mine ETH.

“Mr. Kadyrov pays great attention to the energy situation. He wants to ensure a stable energy supply for residents.”

State Duma Lawmaker Adam Delimkhanov

Power shortages have blighted the Nothern Caucasus region for years, particularly in the winter months.

Energy firms say illegal crypto miners are to blame for this, with many allegedly using “illegal” connections to local grids.

In the neighboring republic of Dagestan, the local government has pleaded with residents to “consider” their “fellow countryfolk” and power down their rigs.

The republic has followed up with crackdowns on illegal crypto miners. Similar crackdowns are also in place in parts of Siberia, where even public officials have been caught illegally mining crypto.

AI-powered Solution to Mining Issue?

Earlier this year, Russian scientists claimed they had created an AI-powered solution that lets energy providers track down illegal crypto miners.

The solution works with smart meters to detect unusual power flows. These alert engineers, flagging households suspected of operating illegally connected crypto mining hardware.

In other parts of Russia, private mining is now legal if residents do not exceed a 6,000 kWh monthly power usage threshold.

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