Korean Police Arrest Bitcoin Miners Illegally Using Factory Power

crypto mining

In South Korea, 14 bitcoin miners have been busted for illegally making use of cheap electricity in industrial complexes to mine cryptocurrencies.

The report was published by the Yonhap news agency, and the alleged mining activities were discovered in 4 different complexes in the southwestern city of the country, Gwangju.

It cites an announcement made by the metropolitan police agency of Gwangiu regarding the accusation. It alleges that the companies violated the rules of factory use.

The report states that companies that set up bitcoin mining rigs in such areas are charged ten percent lower electricity costs when compared to other firms in general areas along with lower rents.

The erring companies allegedly installed 100-350 bitcoin mining rigs in their facilities. They have been mining cryptocurrencies for close to a year now.

About six companies were situated in the Hanam industrial complex, but three others were located in the Pyeongdong Industrial Complex. The last one was discovered in the Jingok Industrial Complex.

It is not the first time crypto miners have been busted for illegally using cheaper electricity in office areas or public in the country.

Last year in South Korea, one electronics retail marketplace took the bold step to outlaw vendors from keeping a mining rig or mining bitcoin in their outlets. This move was made to protect traders in the area, as mining rigs are a fire hazard.

A police spokesperson for the Gwangiu region told reporters that the police department has been urging the government to sanction all landlords of the industrial complexes who knowingly allow the illegal mining activity to transpire.

Illegal mining of bitcoin can increase electricity bills, and this is illegal in many jurisdictions. It is also used to hack into computers and use their processors to mine. This slows down the computer.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.


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