Authorities in Libya Arrest Dozens of Chinese Crypto Miners
- Authorities in Libya have arrested around 50 Chinese crypto miners for conducting illicit operations.
- The illicit mining farms were found inside an abandoned iron factory on the country’s western coast.
- 10 other Chinese crypto miners were arrested in the Misrata District in northwestern Libya on Wednesday.
- A matrix of wires connecting digital conversion systems, data servers, fans, and high-voltage refrigerators was found.
The crackdown on cryptocurrency miners by Chinese authorities in 2021 led to a significant number of miners closing down their businesses or migrating to other countries. Some of these miners found haven in Libya, the fourth-largest country in Africa and the Arab world. However, the authorities in the region have arrested close to 50 Chinese nationals allegedly involved in an illegal crypto mining operation in the city of Zliten, as per the latest reports.
According to a report citing an announcement from the attorney general of Libya on Friday, the arrested miners were found operating illicit mining farms inside an abandoned iron factory on the country’s western coast. The entire process of the substantial dismantling of the crypto mining farms was disclosed in the form of photos and videos by the office of the attorney general, Siddiq Al-Sour.
The report noted that the entire illicit crypto mining system consisted of a matrix of wires connecting digital conversion systems, data servers, fans, and high-voltage refrigerators. Interestingly, 10 other Chinese nationals were arrested in the Misrata District in northwestern Libya on Wednesday.
The 10 nationals were caught “red-handed” with dozens of powerful computers used to conduct complex mining calculations to earn block rewards. Interestingly, the authorities seized these machines.
The attorney general’s office added that these acts “violate the law” while adding that the alleged perpetrators used “high-energy devices [that] harness a large amount of material to mine cryptocurrencies”.
The authorities in Libya were also in the process of assessing “the damage to public money and public interest… as a result of the use of high-energy devices and the violation of the rules of monetary policy.”
More importantly, Libya has imposed a ban on cryptocurrency mining but has recorded the highest percentage of cryptocurrency mining across the African continent, contributing 0.6% of the world’s Bitcoin production in 2021.
Just like Kazakhstan, the African region is known for its cheap electricity rates. Following China’s crackdown on crypto mining, miners found safe haven in countries like Libya and Kazakhstan. The electricity rate in Libya is around $0.004 per kilowatt hour, which is around 40 times cheaper than the United States.
As per a recent report from BitcoinWisdom, people in Africa have taken a positive approach to cryptocurrency. The payment service of the world’s largest crypto exchange, Binance Pay, noted that it is making considerable progress in integrating cryptocurrencies with physical goods and services in Asia and Africa.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
