Tajikistan’s Prosecutor General, Habibullo Vohidzoda, has voiced concern over the illegal operation of cryptocurrency mining farms in the country, which he says are draining the power grid and causing substantial financial losses.

Speaking at a recent news conference in Dushanbe, Vohidzoda said that over the first six months of this year alone, authorities uncovered and recovered 32 million somonis (US$2.9 million) in damages linked to unauthorized electricity use for installing and running mining equipment.

“There are individuals who import mining equipment from abroad and illegally mine cryptocurrency,” Vohidzoda stated.  He added that four to five criminal cases have been opened over the installation and operation of such devices, with investigations ongoing.

Cryptocurrency mining — the process of generating digital currency via decentralized networks — requires powerful computers, high-speed internet, and large amounts of electricity.

While the practice is not regulated under Tajik law, authorities routinely shut down illegal mining farms in private homes and enterprises.  In Sughd province alone, prosecutors recently seized 135 mining units from residential properties, with damages estimated at nearly 288,000 somonis.

Widespread electricity theft and unpaid bills

The prosecutor general also reported extensive electricity theft, with 3,988 people held administratively or disciplinarily liable and 190 criminal proceedings were instituted in the first six months of the year. Losses of 38.7 million somonis were recovered for the state budget.

Electricity arrears remain a major problem, totaling 4.6 billion somonis nationwide.  Of this, 1.6 billion is owed by residential customers, while the remainder is owed by businesses and organizations.

The country recently increased penalties for illegal electricity use and nonpayment.  Under the country’s Criminal Code, offenders face fines ranging from 27,000 somonis to 90,000 somonis or prison terms of three to ten years.  Administrative fines for misuse of electric or thermal energy range from 1,500 somonis to 22,500 somonis.