BlockBeats reported that on September 26, according to Cryptonews, the government of Dagestan, Russia, issued an announcement that local law enforcement agencies and energy officials have joined forces to crack down on illegal cryptocurrency mining activities and found an underground cryptocurrency mining site in the capital Makhachkala.

According to a message released by the Minister of the Cabinet of Dagestan via Telegram, law enforcement officers found 17 cryptocurrency mining equipment several meters underground in the Sergokalinsky district of Makhachkala. In order to evade supervision, illegal miners began to set up underground mines and mobile mining units in many places in Dagestan. These illegal mining activities caused a fire at the local 110 kV Novaya substation, causing power outages in parts of the capital for several days. The government will invest about 3 billion rubles (about 32.5 million US dollars) to repair damaged energy facilities.

The Dagestan government is working closely with Dagenergo, the North Caucasus branch of state-owned electricity supplier Rosseti, to combat illegal mining activities.

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