"Smaller Town's Consumption Levels vs."
In a significant move to protect critical energy consumers and ensure legal compliance, Kazakhstan's authorities have taken action against unauthorized power sales to cryptocurrency miners. The crackdown, led by the Financial Monitoring Agency (FMA/AFM) and the National Security Committee (KNB), has uncovered an illegal electricity supply scheme in East Kazakhstan that lasted for over two years.
The investigation revealed that local utility employees and power companies in East Kazakhstan had been supplying electricity outside legal frameworks. Mining farms in Kazakhstan are only legally allowed to buy up to 1 MWh at a time directly from a state-run platform operated by the Ministry of Energy. However, this was bypassed, leading to the illegal supply of over 50 megawatt-hours of power, enough for a city of 50,000 to 70,000 residents.
The illegal activities resulted in a significant financial loss, with the electricity sold worth over 9 billion tenge (about $16.5 million). The total value of assets seized by the court from the group of companies exceeded the same amount. The court seized two apartments in the capital that were acquired using criminal proceeds by the group of companies, as well as four vehicles.
One individual linked to the illicit profits has been identified, with assets including the seized apartments and cars. The investigation is ongoing, suggesting further legal actions may follow. Recent penalties and legal actions include asset seizures linked to at least one suspect in the case. Authorities have dismantled the operation and continue probing the network responsible for the illegal electricity supply.
A mining farm was discovered at a production base in Temirtau, which may be connected to the illegal activities of the group of companies. The mining company that operated the farm lost its license due to a fee of 7.9 million tenge that it was ordered to pay.
This crackdown underscores Kazakhstan’s commitment to enforcing regulations and ensuring that energy is distributed legally and fairly. The authorities are working tirelessly to combat illegal activities and protect the interests of the country and its citizens.
| Aspect | Details | |----------------------------|------------------------------------------------------------------------------------------| | Power-supplying companies | Local utility employees and power companies in East Kazakhstan (names not publicly disclosed) | | Ongoing investigations | Led by Financial Monitoring Agency and National Security Committee, ongoing | | Illegal supply volume | Over 50 MWh over two years, equivalent to city-sized consumption | | Losses | KZT 9 billion (~$16.5 million) | | Legal framework violated| Mining farms must buy ≤1 MWh from a state-run platform; this was bypassed | | Recent penalties | Seizure of assets from at least one involved individual; operation dismantled | | Discovered mining farm | At a production base in Temirtau | | License loss | Due to a fee of 7.9 million tenge | | Reporting agency | Financial Monitoring Agency |
