Police from Ukraine just seized 9,000 games consoles and PCs in an underground and illegal cryptomine operation.
The mine was stealing over $259,300 worth of electricity per month that caused power outages within the area.
Ukraine authorities also said that it is the largest crypto mine operation discovered in the country by far.
How The Operation Was Discovered
The mine located in Vinnytsia, near Kyiv, stole hundreds of thousands of electricity every month. The illegal operation was able to mask what it has been doing from the Security Service of Ukraine, but not for long.
The operators used 5,000 computers and 3,800 electricity meters that were not using their energy consumption. T
he security service said to Business Insider, “Such illegal activity could lead to power surges and leave people without electricity.”
Along with the computers and consoles, authorities also seized 500 graphic cards, 50 processors, and the proof of documents on the site’s electricity consumption. Other things to take for evidence were phones, flash drives, notebooks, and more.
Police have already begun criminal proceedings regarding the theft of thermal, water, and electrical energy. The operation was run by some inhabitants of Kyiv and Vinnytsia, three hours just outside the capital.
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Ukraine Moves to Digital
While the security service in Ukraine cracked down on more illegal mining activities, there have been reports cited by Yahoo! News that the parliamentary body, the Verkhovna Rada, recently passed a law regarding payment services.
The law passed said that the central bank’s digital currency, the digital hryvnia, is now treated as cash.
The decision showed that the Ukraine government shows its enthusiasm towards making its economy digital.
So far, the digital hryvnia is still in its research and development phase. However, it seems to be investing much in it since it was created in 2018.
It was tested on a Stellar Lumens blockchain as well.
More Miners Still Exist
Recently, in another country, China has banned cryptocurrency mining, forcing miners to either flee the country or give up entirely.
Mike Huang, an operator of a cryptomining farm, says, “Many miners are exiting the business to comply with government policies … Mining machines are selling like scrap metal.”
Most miners in the country of China are already selling their machines or choose to go outside the country to continue their operation. As a result, Nishant Sharma, the founder of BlocksBrige Consulting, has said that “every mining operation outside China benefits straight away … This is the end of an era for cryptomining in China,”
Machines that usually cost thousands of dollars were now being sold for a quarter of the cost or less in China.
Companies like BIT Mining chose to ship their mining machines to neighboring Kazakhstan and with the central government not looking to change their tone. The business might shift to a different country entirely.
However, there are still people who hope that the ban will eventually relax regardless of the firm stance the Chinese government has taken.
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This article is owned by Tech Times
Written by Alec G.
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