Central Asia Faces Growing Wave of Illegal Bitcoin Mining Draining National Power Grids
Authorities in Central Asia are contending with a rise in illicit cryptocurrency mining operations that siphon off vast amounts of electricity, straining national grids and costing governments millions.
In Tajikistan, Attorney General Khabibullo Vokhidzoda revealed that unauthorised mining caused an estimated $3.52 million in damages during the first half of 2025 alone. The losses stem from miners tapping into the power supply without payment, forcing the state to reimburse energy providers. Vokhidzoda said four to five criminal cases tied to mining equipment are underway, and in one regional investigation, 135 mining rigs were discovered hidden inside residential properties, inflicting more than $30,000 in damage.
Although cryptocurrency mining in Tajikistan occupies a legal gray area—neither explicitly permitted nor banned—it exists within a broader problem of unpaid electricity usage. Since January, the country has opened 190 cases related to illegal power consumption, implicating nearly 4,000 individuals and pushing total damages to $4.26 million.
Kazakhstan, another Central Asian nation grappling with the same issue, recently dismantled a large-scale scheme in which employees at local power companies funnelled over 50 megawatt-hours of electricity—enough to power a city of 50,000–70,000 people for a year—into unlicensed mining farms. Authorities value the stolen energy at around $16.5 million. The alleged organiser reportedly converted profits into real estate and vehicles, all of which are now subject to seizure.
Like Tajikistan, Kazakhstan does not outright ban crypto mining, but new laws require miners to purchase power directly from the Ministry of Energy, with strict caps on consumption. These measures followed a mining boom after China’s 2021 crackdown, when displaced miners sought out Kazakhstan’s inexpensive electricity and comparatively relaxed oversight.
Experts say the region’s combination of low energy costs, inconsistent enforcement, and sometimes ambiguous legal frameworks makes it an attractive haven for both opportunistic and sanctioned actors. Alex de Vries, founder of Digiconomist, noted that similar conditions in Kazakhstan lured Chinese miners after Beijing’s ban. Ari Redbord of TRM Labs added that Russian entities, including those facing international sanctions, have tapped into Central Asia’s crypto infrastructure in places like Kyrgyzstan—networks that could just as easily facilitate illegal mining activity in neighbouring countries.
Even when governments impose comprehensive restrictions, mining operations often persist in smaller, harder-to-detect forms. China’s share of global Bitcoin mining, for example, dropped sharply after its ban but still accounts for about 20% of activity, according to the Cambridge Bitcoin Electricity Consumption Index. For Tajikistan and Kazakhstan, the lesson is clear: eliminating illegal mining may be far more difficult than curbing its scale.
