Georgia launches crackdown on illegal crypto mining
Georgian law enforcement authorities have launched a large-scale crackdown on illegal cryptocurrency mining in the mountainous Svaneti region. During an operation in the Mestia municipality, around 150 cryptocurrency-mining devices were seized, Qazinform News Agency reports.
According to Georgia’s Ministry of Internal Affairs, investigative actions were conducted simultaneously at six locations. Authorities discovered specialized equipment used to generate digital assets that consumed substantial amounts of electricity.
“The investigation established that local residents systematically used these devices to generate digital currency and obtain illegal income by unlawfully consuming large amounts of electricity,” the Ministry of Internal Affairs stated.
The seized equipment has been admitted as evidence in the criminal case. Investigations continue to identify other individuals who may have been involved in the scheme.
The case is being investigated under an article related to violations of energy resource use regulations, which carries a penalty of up to 3 years’ imprisonment.
Illegal cryptocurrency mining has become one of the most pressing challenges for Georgia’s energy system in Svaneti in recent years. Residents of the region receive free electricity under a state benefit program for high-altitude areas, but this has contributed to a surge in unregulated mining operations and increased strain on the power grid.
According to government data, Mestia consumed approximately 133 million kilowatt-hours of electricity in 2025, significantly more than many other municipalities nationwide. Authorities estimate that the annual damage to the energy system from excessive and unauthorized consumption ranges from $7.3 million to $9.1 million.
On June 1, State Minister for Coordination of Law Enforcement Agencies Mamuka Mdinaradze announced the launch of a systematic campaign against illegal cryptocurrency mining. The government plans to install electricity meters and set limits on free power consumption. Residents who exceed the established threshold will be required to pay the standard electricity rate.
Earlier, Qazinform News Agency reported that crypto scams reached record levels, with 17 billion stolen in 2025.
