Police in Indonesia’s North Sumatra province have cracked down on a sizable Bitcoin mining operation, raiding and shutting down 10 different mining sites that allegedly stole close to $1 million in electricity.
The North Sumatra Police confiscated over 1,100 Bitcoin mining machines along with cables and other computer equipment. Authorities accused the mining organizers of tampering with electrical circuits to illicitly power their substantial mining rigs.
Police chief Irjen Agung Setya Imam Effendi stated the miners improperly tapped electricity from power poles, bypassing meters to measure usage. The total estimated loss from electricity theft across the 10 sites was 14.4 billion Indonesian rupiahs, or approximately $935,666.
Cryptocurrency mining operations continue to face scrutiny globally for alleged electricity theft used to power energy-intensive mining. In August 2022, a Chinese official received a life sentence for facilitating electricity access for a major Bitcoin mining enterprise.
As mining remains controversial for its environmental impact, operators must ensure compliance with energy regulations. Otherwise, authorities are cracking down on unlawful electricity consumption to sustain mining, as this Indonesian case demonstrates. Tighter regulation of mining may be on the horizon in jurisdictions where energy theft runs rampant.
