Cases Of Illegal Bitcoin And Cryptocurrency Mining: Chicken Farms And New York

In the US, China, and South Korea, many individual cryptocurrency miners and large-scale mining centers were cracked down for conducting illicit operations. For example, in April 2018, cryptocurrency miners in South Korea were arrested for illicitly utilizing cheap electricity to produce cryptos.

Chicken farm in South Korea

In South Korea, places such as chicken farms and factories in development restricted areas are provided with electricity at cheaper rates by the government to help struggling industries and support innovative technology-focused initiatives. The government is stricter with the usage of electricity in these areas and consistently monitors the inflow of energy into buildings, factories, farms, and houses near these specially approved districts.

On April 19, police in the Gyeong-ki province of South Korea, the second largest region behind Seoul, arrested operators of a mining center in Nam Yang city. An in-depth police investigation disclosed that five cryptocurrency miners, whose identities remain confidential as they are still in police custody, purposely rented out factories and chicken farms in the protected part of the city to receive electricity for substantially lower rates.

By disguising buildings as semi-conductor factories and several properties as chicken farms, the five individuals were able to mine cryptocurrencies like Bitcoin and Ethereum with virtually no cost apart from the ASIC miners they acquired and installed.

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