Indonesian Police Dismantle Major Bitcoin Mining Scheme

Ten Operations Shutdown Over Electricity Theft

In a recent development, Indonesian authorities have shut down a substantial Bitcoin mining operation. The North Sumatra Police Force acted against ten separate locations involved in Bitcoin mining. They confiscated a large array of equipment, including 1,134 Bitcoin mining machines and related electrical and computer hardware.

Power Theft at the Core of the Operation

Irjen Agung Setya Imam Effendi, the Chief of North Sumatra Police, detailed the method of electricity theft. The organizers manipulated electrical circuits to divert power for their mining machines. "This is the PLN box. However, the electricity flow inside it is not the proper flow that should enter the box and be measured by the meter. Instead, what they took is the upper part, where electricity is taken directly from the pole and channeled inside,” he explained.

The operation's total electricity theft is estimated at around 14.4 billion Indonesian Rupiahs (IDR), equivalent to approximately $935,666 USD.

A Global Issue: Similar Case in China

This incident mirrors a recent case in China. Yi Xiao, a former vice chairman of the Jiangxi Provincial Political Consultative Conference Party Group, was sentenced to life imprisonment for abuse of power in a Bitcoin mining enterprise. Operating under Jiumu Group Genesis Technology, Xiao's operation, running from 2017 to 2021, involved over 160,000 Bitcoin miners. At one point, this consumed 10% of Fuzhou city's total electricity.

The Indonesian police crackdown on Bitcoin mining operations highlights a growing global concern over illegal electricity use in cryptocurrency mining. The case reflects broader issues within the digital currency world, where the quest for profit often clashes with legal and ethical boundaries.