Illicit cryptocurrency mining activities in Tajikistan resulted in losses totaling $3.52 million during the first half of the year, according to Attorney General Khabibullo Vokhidzoda.
At a recent press briefing, Vokhidzoda stated that these damages stem from the unlawful consumption of electricity by crypto miners, with the government compensating energy companies for the losses.
“Individuals are importing equipment for cryptocurrency mining ventures into the country and engaging in unauthorized mining operations,” Vokhidzoda explained. He further noted that there are currently four to five active criminal investigations related to the unauthorized use of mining equipment.
These statements from Vokhidzoda echo a similar report from the Sughd region’s prosecutor’s office, which is investigating seven cases involving the discovery of 135 mining devices within residential properties, causing damages exceeding $30,000.
While Tajikistan lacks clear regulations either legalizing or prohibiting crypto mining, such activities are occurring against a backdrop of widespread unlawful and unpaid electricity usage throughout the nation.
Since January, authorities have initiated 190 criminal cases connected to this energy misuse, involving 3,988 individuals and amounting to $4.26 million in damages to date.
Tajikistan isn’t the only Central Asian nation struggling with a rising cryptocurrency mining challenge. Authorities in Kazakhstan recently dismantled a plot to mine digital currencies using illegally obtained electricity.
A joint operation by Kazakhstan’s Financial Monitoring Agency and National Security Committee revealed that employees of local power companies had, over a two-year period, supplied crypto mining operations with over 50 megawatt-hours (MWh) of electricity originally intended for residential and commercial users.
This energy volume is comparable to the electricity needs of a city with a population between 50,000 and 70,000.
Kazakh officials also reported that the value of the misappropriated electricity was around $16.5 million. The scheme’s orchestrator allegedly used the illicit gains to acquire two apartments and four vehicles, all of which are now subject to seizure.
Similar to Tajikistan, cryptocurrency mining is not specifically illegal in Kazakhstan. Nevertheless, the government has been actively seeking to curtail its impact on the country’s power infrastructure.
New legislation dictates that crypto mining farms can only procure electricity from the Ministry of Energy, and mandates a minimum purchase quantity of 1 MWh.
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These regulations are designed to limit a sector that experienced substantial growth after China prohibited cryptocurrency mining in 2021, turning Central Asia into an attractive destination for miners due to its low costs and lax enforcement.