Thai authorities dismantle nine illegal bitcoin mining operations, arresting two suspects for stealing over US$280,000 in electricity.
Thai authorities have dismantled nine illegal bitcoin mining operations and arrested two suspects for stealing over US$280,000 (S$375,000) worth of electricity, police reported on November 13. A resident tipped off authorities after noticing multiple CCTV cameras installed at what seemed to be an abandoned house in Surat Thani province. As a result, the operation was launched to investigate the suspicious activity. The police officer who directed the probe, Pongsak Meemusik, said the arrest came after receiving reports of power theft in the region that led to the discovery of other unlawful mining.
The Central Investigation Bureau and the Provincial Electricity Authority raided the place last week. They found a rudimentary bitcoin mining operation there, using tweaked electricity meters to steal electricity worth over 10 million baht (S$385,000). Two suspects, aged 30, were arrested and charged with theft. In addition to the raid, the police uncovered eight similar raids in the province.
Thailand Struggles with Growing Illegal Bitcoin Mining Amid Power Blackouts
Mining for Bitcoins is a power-intensive process. Miners employ sophisticated computers to solve very hard computational riddles in return for newly created bitcoins. In Thailand, miners are categorized as manufacturing. Consequently, they have to pay taxes for their activity. Illicit mining has increased, with numerous rigs consuming excessive power without paying proper bills. As a result, this growing issue has significantly strained the local power supply.
However, this latest crackdown is not the first. In August 2024, another bitcoin mining bust was conducted in Ratchaburi province, west of Bangkok. The raid came after several weeks of blackouts linked to the mining site. People in the area complained of frequent power blackouts.
The recent high in the price of Bitcoin hit a record high of more than US$89,000 after Donald Trump’s presidential win. It is believed to have contributed to the spike in illegitimate mining activities. This has led to an increase in the difficulty level of mining. Because the value of one bitcoin has increased, those involved in mining are looking for better results.
The Thai authorities’ intention to persist in combating unlawful mining is evidence of increasing concerns about energy use and managing virtual currencies in the nation. As the market for virtual currencies expands, authorities are expected to step up enforcement. This will ensure that operations comply with the law and contribute somewhat to the national economy.
