Libyan authorities have arrested 50 Chinese nationals over an illegal cryptocurrency mining operation in the city of Zliten. According to an announcement by the Libyan attorney general’s office, the individuals were caught running a mining farm inside an abandoned iron factory.
The office of the attorney general, Siddiq Al-Sour, revealed photos and videos showing the dismantling of substantial mining systems found in Zliten. The equipment included a matrix of wires connecting digital conversion systems, data servers, fans and high-voltage refrigerators.
This followed the recent arrest of 10 other Chinese nationals in Misrata. They were apprehended “red-handed” with powerful computers used for mining and the equipment was seized.
The attorney general’s office declared that these acts “violate the law” as they involve the use of high-energy devices and the violation of the rules of monetary policy. To assess the damage to public money and public interest, Libyan authorities are asking for experts to help.
Cryptocurrency mining is officially banned in Libya, yet it accounts for 0.6 percent of the world’s Bitcoin production in 2021. This is due to the low cost of electricity in the country ($0.004 per kilowatt hour, around 40 times cheaper than the US), making it an attractive destination for miners.
Unfortunately, the political instability and power blackouts (up to 18 hours a day during summer) have impacted the already battered electricity grids in the country. To address this, the authorities are intensifying their efforts to crack down on mining activities, investigating sites in Tripoli and Misrata.
