- 50 Chinese nationals were arrested for allegedly mining cryptocurrency illegally.
- Libyan authorities discovered a matrix of wires connected to high-powered devices used in illegal crypto-mining.
- 10 Chinese were arrested before this event.
Chinese Nationals were arrested for violating Libya’s law
Five days ago, Libyan authorities discovered an abandoned iron factory converted into a crypto-mining facility in Zliten, a city in the eastern province of Tripoli.
A Report by The New Arab detailed the arrest and statement by the Office of the Attorney General.
The office of the Attorney General of Libya announced that 50 Chinese nationals were arrested for illegally mining cryptocurrency in an abandoned iron factory.
It was an astonishing sight for the authorities to discover,
“a matrix of wires connecting digital conversion systems, data servers, fans, and high-voltage refrigerators.”
The Attorney General’s office released pictures and videos showing the mining devices dismantling. Although the Attorney General, Siddiq Al-Sour, confirmed the number of Chinese nationals arrested, there was no confirmation on the exact number of crypto-mining systems discovered. However, it was reported that Libyan authorities are actively seeking experts to gauge the impact of the mining operations on the public interest.
Before this incident, 10 Chinese citizens were also arrested by Libyan authorities over illegal crypto mining.
The 10 Chinese nationals were caught with several powerful computers used for mining calculations. The Office of the Attorney General stated that the high-powered computers were seized.
Libya’s Cheap Electricity Cost made it susceptible to High illegal crypto-mining operations.
In 2021, the New Arab reported that Libya is becoming the hub of Bitcoin mining operations in Africa, despite the ban on crypto mining.
In 2018, Libya‘s Central Bank Authorities banned crypto mining operations. The crypto mining market was not regulated by the government, which leaves a loop for criminals to exploit it.
The ban has not been lifted, but the arrest of these 50 Chinese nationals shows that crypto-mining operations are still very active in the country.
Libya’s electricity cost is one of the cheapest in Africa. This made it an appealing place for illegal crypto miners due to the cheaper electricity cost.
However, illegal crypto mining in Libya has led to unstable electricity due to battered electricity grids.
Despite the ban, Libya still has a high rate of crypto mining operations in Africa. It is a common occurrence in countries where crypto mining is banned, like China. Crypto operations were banned in 2021 in China, but the country had a 20% hash rate of crypto mining in 2022.
Countries that banned cryptocurrency mining operations.
In 2021, the Chinese government banned crypto mining due to its high environmental costs and economic concerns.
Bangladesh banned cryptocurrency mining operations as early as 2017. The government stated that any crypto activity violates their anti-money laundering laws.
Egypt, Algeria, and Morocco are countries in Africa where the government placed a ban on crypto activities, including trading and mining operations. The concerns of these governments are quite valid, as cryptocurrency mining operations can be used to facilitate criminal or terrorist activities.
The environmental impact of crypto mining operations and the economic concerns are also valid points to consider.
Due to these challenges, more crypto-focused crime task forces are being created worldwide to curb the negative use of blockchain technology.
