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Indonesian Authorities Quash Illegal Multi-Site Bitcoin Mining Operation

2 mins
Updated by Kyle Baird
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In Brief

  • Indonesian police shut down 10 Bitcoin mining operations, seizing 1,134 machines and alleging electricity theft.
  • Losses from these operations is estimated at 14.4 billion IDR (~$936,000); police cite improper electricity flow.
  • Indonesia launches a national crypto exchange, aiming for a fair, regulated trading ecosystem, active since July 17.
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Indonesian police authorities have shut down 10 illegal Bitcoin mining operations, underscoring a firm stance against electricity theft in the crypto sector. The North Sumatra Police Force led the operation, targeting multi-site Bitcoin mining activities across Indonesia.

This resulted in the confiscation of 1,134 Bitcoin mining rigs, along with other various electrical cables and computer equipment.

Indonesia Crack Down on Illegal Bitcoin Mining and Energy Theft

North Sumatra’s Police Chief, Irjen Agung Setya Imam Effendi, highlighted the illicit nature of these operations, stating,

“As we can see here, this is the PLN box. However, the electricity flow inside it is not the proper flow that should enter the box and be measured by the meter. Instead, what they took is the upper part, where electricity is taken directly from the pole and channeled inside.”

This illegal tampering with electrical circuits has reportedly led to a significant financial toll, estimated at 14.4 billion Indonesian rupiahs, approximately $935,666.

The crackdown in Indonesia is not an isolated incident but part of a broader global trend addressing illegal cryptocurrency practices. Similarly, a Chinese official was recently sentenced to life imprisonment for facilitating similar illegal Bitcoin mining activities.

These international actions reflect growing concerns over the ethical and legal dimensions of cryptocurrency mining.

Read more: How To Mine Cryptocurrency: A Step-by-Step Guide

A National Crypto Exchange

In July 2023, the Indonesian government launched a national crypto asset exchange. This initiative represents a significant effort to regulate and also legitimize crypto trading within the country.

Value of crypto transactions in Indonesia, 2020-2022. Source Statista
Value of crypto transactions in Indonesia, 2020-2022. Source Statista

Didid Noordiatmoko, head of the Commodity Futures Trading Regulatory Agency, emphasized the government’s commitment, stating,

“The establishment of the exchange, clearing, and crypto asset storage place management is proof of the government’s presence in efforts to create a fair and just crypto asset trading ecosystem to ensure legal certainty and prioritize protection for the public as customers.”

Overall, this reflects a balanced approach that combines stringent law enforcement against illegal activities with the creation of a regulated, transparent trading environment. By establishing this crypto exchange, Indonesia also aims to safeguard investors and position itself as a forward-thinking player in the global digital economy.

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This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.

Kyle Baird
Kyle migrated from the East Coast USA to South-East Asia after graduating from Pennsylvania's East Stroudsburg University with a Bachelor of Science degree in 2010. Following in the footsteps of his grandfather, Kyle got his start buying stocks and precious metals in his teens. This sparked his interest in learning and writing about cryptocurrencies. He started as a copywriter for Bitcoinist in 2016 before taking on an editor's role at BeInCrypto at the beginning of 2018.