“Big Bitcoin Heist”: Over $2 Million Worth of Cryptocurrency Mining Equipment Stolen in Iceland

Eleven Suspects Arrested in Connection with Theft

In a major break-in case in Iceland, around 600 computers used for mining Bitcoin and other digital currencies have been stolen from local data centers. The incident, named the “Big Bitcoin Heist”, has seen eleven individuals taken into custody. Two of the suspects have been held in custody by a judge at the Reykjanes District Court.

Details of the Theft

The stolen equipment, worth almost $2 million, consisted of powerful computers used for mining new cryptocurrencies. The criminals could potentially turn substantial profits in the untraceable digital currency market without selling the computers if the equipment is used for its intended purpose. Icelandic Police Commissioner, Olafur Helgi Kjartansson, described the crime as “a grand theft on an unseen scale.”

• Crime dubbed ‘Big Bitcoin Heist’
• 600 computers worth nearly $2 million stolen
• Equipment used for mining cryptocurrencies
• Suspects could potentially profit from ill-gotten gear

Timeframe & Initial Silence from Authorities

The burglaries occurred between December 2017 and January 2018 with three incidents taking place in December and one in January. The authorities chose to keep the matter under wraps initially in an attempt to gather more evidence.

Background - Bitcoin and the Blockchain

Bitcoin is a type of digital currency that functions independently of banks and governments. Its value has been volatile and unpredictable, with substantial intraday rises and falls over the past year.

1. Decentralized digital currency
2. Operates on a blockchain system
3. Value fluctuates significantly

Beyond its volatility, Bitcoin and other cryptocurrencies rely on a decentralized, public, distributed ledger system known as the blockchain. This network requires miners, who add computational power, potentially earning new Bitcoins in the process. The energy demands for maintaining this computational power have led to increased interest in Iceland due to its abundant renewable energy sources.

Police Investigation & Potential Risks

The theft of these powerful mining computers, crucial for creating new Bitcoin, triggered a nationwide hunt for the stolen equipment. The police are closely monitoring electricity usage patterns and have requested assistance from local internet providers, electricians, and storage space providers.

Warnings from the Bank of England

During a speech at the Scottish Economics Conference, Bank of England Governor Mark Carney issued a warning about the risks of investing in cryptocurrencies like Bitcoin. He criticized the “speculative mania” surrounding new cryptocurrencies and called for international regulators to scrutinize these digital assets as stringently as other financial assets. Regulations and oversight can help mitigate potential risks and provide greater consumer protection.