Indonesian police raid Bitcoin mining operation to steal electricity worth more than $1 million
The Indonesian government recently ordered the closure of 10 Bitcoin mining companies located across the country as part of a major crackdown on criminal activity, including cryptocurrency mining. This action has been taken after conducting a comprehensive investigation into these activities and finding that they are operating without the necessary licenses and permits. A search conducted in Medan, located in North Sumatra, resulted in the detention of 1,314 pieces of Bitcoin mining equipment. It is stated that these illegal mining operations involve energy theft. The suspects reportedly accessed utility poles operated by state-run power company PLN to steal electricity.
Bitcoin mining required to confirm and add transactions blockchain, it requires significant amounts of processing power and energy resources. The fact that these activities were carried out without permission not only raised legal issues, but also caused environmental problems due to the enormous amounts of energy used. Indonesian authorities have emphasized the need to take action against illegal activities that not only jeopardize the country’s financial system but also have the potential to support illegal activities such as money laundering and support for terrorist organizations.
The energy theft techniques used by the miners were revealed by North Sumatra Police Chief Irjen Agung Setya Imam Effendi. According to the charges, they disrupted electrical circuits and stole energy directly from the poles, resulting in total losses estimated at 14.4 billion Indonesian rupiah, equivalent to about $935,666. The amount discussed here is equivalent to the annual energy use of approximately 7,500 Indonesians. Under Indonesian law, power theft is considered a criminal offense and offenders face up to five years in prison or a fine equal to twice the amount of energy not paid.
The growing popularity of cryptocurrency mining has created many challenges around the world, including the increasing amount of energy used and the impact on the environment. As a result, governments around the world are struggling to find ways to successfully regulate this industry. The crackdown in Indonesia is part of a larger trend of governments imposing rules to govern the fast-growing cryptocurrency business. The purpose of these laws is to ensure that the industry functions in accordance with legal and environmental standards. These activities represent a growing awareness of the need to maintain a balance between technological growth and the implementation of sustainable practices. The cryptocurrency market is constantly evolving, and it is essential for regulators to keep an eye on it and point out directions for expansion to protect the public interest and the environment.
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