Indonesian authorities have taken decisive action against illegal Bitcoin mining operations, shuttering 10 facilities across the country amid accusations of electricity theft amounting to nearly $1 million. According to a recent report, the North Sumatra Police Force orchestrated the crackdown, targeting a network of Bitcoin mining operations spanning multiple locations in Indonesia. The operation resulted in the confiscation of 1,134 Bitcoin mining machines, along with significant amounts of electrical cable and computer equipment.
Chief of North Sumatra Police, Irjen Agung Setya Imam Effendi, outlined the allegations, asserting that those behind the operations had tampered with electrical circuits to siphon off power for the extensive mining activities. Effendi provided insight into the modus operandi, explaining, “As we can see here, 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.”
The reported losses from the illicit operations are staggering, estimated to be approximately 14.4 billion Indonesian rupiahs, equivalent to $935,666. This crackdown mirrors recent global efforts to curb illegal Bitcoin mining activities. In China, a former government official, Yi Xiao, faced severe consequences for facilitating access to electricity for Bitcoin mining. Xiao, formerly a vice chairman of the Jiangxi Provincial Political Consultative Conference Party Group, was sentenced to life in prison by the Hangzhou Intermediate People’s Court for abuse of power in connection with a substantial Bitcoin mining enterprise.
Operating under the corporate name Jiumu Group Genesis Technology from 2017 to 2021, Xiao and other corporate executives amassed over 160,000 Bitcoin miners, consuming an astonishing 10% of the electricity supply of the city of Fuzhou. These developments underscore the ongoing challenges authorities face in regulating the burgeoning cryptocurrency industry, with concerns over electricity theft and environmental impact at the forefront of regulatory efforts.