Russian citizens are fuming at reports that illegal crypto miners in Abkhazia are using Moscow-provided electricity to power their rigs.
Multiple media outlets and social media users have raged after a “Polish tourist” posted a report and a video appearing to show that ASIC Bitcoin (BTC) miners are operating in rural parts of Abkhazia.
These reports come just days after Russia began providing Abkhazia with “humanitarian supplies” of electricity.
Abkhazia: Crypto Mining Crisis
The Caucasus-based de facto state is closely allied with Moscow and is considered a breakaway Georgian republic by most Western and Western-aligned nations.
The “tourist” testified:
“Entire villages are humming; mountains and caves are buzzing [with the sound of ASIC mining rigs]. Cables carrying free electricity are stretching out into the forests. And the forests are also buzzing, too.”
The “tourist” also posted a video entitled “the sound of ASIC rigs over Abkhazia.” This video captures what appears to be the sound of whirring fans outdoors in a rural Abkhazian settlement.
A journalist for the Russian media outlet Noviye Izvestia wrote:
“Mining equipment in this backward, half-ruined country is installed in villages, mountains, forests, and caves.”
The article was titled: “‘Thank you, Russia!’ The Illegal Miners of Abkhazia are Burning up our Free Electricity.”
On Telegram, the popular Russian blogger Sergei Kolyasnikov mused:
“Look at this video! Can you imagine how many devices need to be operating to make so much noise? And each ASIC rig uses 3.5 kW of power. […] It seems that Abkhazia has become a Russian crypto mining offshore.”
‘Crypto Miners to Blame’ as Rolling Blackouts Return in Abkhazia
Timur Dzhindzholiya, the head of the Abkhazia power provider Chernomorenergo, said last month that illegal miners are using up “about 350 million kWh” per year.
Despite the influx of Russian power, Chernomorenergo has been forced to act, turning off power supplies for a fixed period every day.
The power grid, the firm claimed, cannot cope with “excessive loads.” It claims that “the main reason for” these loads “is illegal mining.”
The Ministry of Finance of Abkhazia has claimed that it expects to receive over five billion rubles (over $45 million) worth of aid from Russia in 2025.
“Meanwhile, electricity tariffs will increase across Russia from July 2025. In my native Sverdlovsk Oblast, we will pay between 12.6% to 19.5% more for energy this year.”
Russian blogger Sergei Kolyasnikov
Crypto mining-related controversies have led to public violence at the highest level. Last month, media outlets reported an Abkhazian lawmaker was shot dead during a parliamentary debate on banning crypto mining.
In previous years, Abkhazian communities have taken action, forcibly expelling suspected crypto miners to leave their villages.
The de facto state endured a torrid end to 2024, with its only power station – which is only partially located in Abkhazia – shutting down on December 11.
The Enguri Hydroelectric Power Station. (Source: Paata Vardanashvili [CC BY 2.0])
Activities at the Enguri Hydroelectric Power station were paused “due to critically low water levels” in one of its main reservoirs.
The day prior, the government forced internet providers to cut the entire de facto state’s internet access for seven hours.
The republic has also seen relations with Moscow deteriorate after politicians voted against agreeing on a new investment deal with Russia.
Moscow responded by cutting its funding to the de facto state. In recent days, however, the Abkhazian government has moved to repair its relationship with Russia. Its President claimed he would “try to strengthen relations with” Moscow.
“We very much appreciate Russia’s constant support in overcoming the energy crisis that Abkhazia is experiencing. And we appreciate Russia’s help in resolving other socio-economic development issues.”
Abkhazia President Badra Gunba
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