Georgia seizes 148 crypto mining devices in first crackdown in Mestia - VIDEO

Georgian police have seized 148 cryptocurrency mining devices in the municipality of Mestia in what authorities described as the first law enforcement operation targeting illegal crypto mining in the mountainous region.

According to Georgia's Interior Ministry, officers searched six locations in the municipality and confiscated specialised equipment used to generate cryptocurrencies, News.Az reports, citing News Georgia.

“The investigation established that local residents were systematically generating digital currency and receiving illegal income through the unlawful consumption of large volumes of electricity. A significant amount of specialised technical equipment was seized as evidence,” the ministry said in a statement.

Investigators said efforts were continuing to identify other potential offenders.

The case is being investigated under Article 229 of Georgia's Criminal Code, which covers violations of energy resource usage regulations and carries a maximum penalty of up to three years in prison.

Residents of the highland region of Svaneti receive free electricity under a state subsidy designed to support people living in remote mountainous areas. However, the programme has also fuelled illegal cryptocurrency mining, with electricity consumption in the region rising sharply and placing growing strain on the power grid.

On 1 June, State Minister for Coordination of Law Enforcement Agencies Mamuka Mdinaradze announced that the government was launching a systematic campaign against illegal crypto mining in Mestia.

According to Mdinaradze, Mestia consumed around 133 million kilowatt-hours of electricity in 2025, significantly more than many other municipalities across the country.

Authorities estimate the annual damage to the energy system at between 20 million and 25 million lari ($7.3 million-$9.1 million), arguing that the costs are ultimately borne by electricity consumers nationwide.

To address the problem, the government plans to install electricity meters and introduce a cap on free electricity consumption in Svaneti. Households will continue to receive electricity free of charge up to a specified limit, while consumption above that threshold will be billed at standard rates.

Mdinaradze also warned that law enforcement agencies would target consumers using unusually large amounts of electricity and promised a tough response to violations.

News.Az