On August 23rd, 2024, Thai authorities launched a raid on an illegal Bitcoin mining farm situated in Ratchaburi, West of Bangkok after growing complaints of power outages in the area. The power cuts that started a month ago were being associated with power theft by this illegal farm. After receiving numerous complaints from the residents of area, Provincial Electricity Authority (PEA) started an investigation and found a house which was consuming unusual amounts of electricity. It paid little in bills which pointed to a power theft. However, no arrests could be made as the operators reportedly fled the scene when they realized the authorities were approaching.
A similar crackdown by Thai authorizes in Dec 2022 at Bangkok and Nonthaburi had led to the seizure of 3500 illegal cryptocurrency-mining units which had drained about 500 million baht’s worth of electricity from the state grid in the past two years.
This issue of illegal crypto mining is not isolated to Thailand. There have been multiple examples from across the world in the recent past.
- Libya: Libya had arrested 50 Chinese nationals in June 2023 from a crypto farm who were involved in illegal mining of Bitcoin.
- Paraguay: Paraguayan government had seized over 550 illegal miners in May 2024, which were siphoning energy from the national grid.
- Iran: Iran has recently announced a reward of 1 million toman ($24) for anyone who reports illegal crypto mining in the country. This step is aimed at curbing power theft amid a severe heat wave.
- Malaysia: Malaysia witnessed a power theft worth $723 between 2018 and 2023 due to illegal crypto mining, according to its deputy minister for energy and water.
- Kosovo: Kosovo’s Ministry of Economy had echoed similar concerns in Apr 2023 when it admitted savings of 2 million euros in electricity by confiscating illegal crypto-mining equipment.
These incidents illustrate a growing problem in the crypto world where illegal mining of cryptocurrency has become a concern for modern governments. These operations often tap into the power grid without authorization, leading to significant financial losses for electricity providers. The governments have responded in the form of launching crackdowns, announcing rewards for reporters, and regulations. Still, there is a need for more regulation to ensure that domestic consumers of electricity do not fall prey to these criminals.