Title: Libyan Authorities Raids Illegal Cryptocurrency Mining Operation, Arrest 60 Chinese Nationals
Unprecedented Crackdown on Financial Crimes in Libya
In a significant move against financial crimes in Libya, authorities have arrested 60 Chinese nationals for allegedly operating an illegal cryptocurrency mining farm in the coastal city of Zliten.
Discovery of the Cryptocurrency Mining Farm
The suspects were discovered inside an abandoned iron factory, where they had set up sophisticated mining systems, as per a statement from the Libyan attorney general’s office.
- Intricate network of wires connecting mining equipment
- Digital conversion systems and data servers
- Fans for cooling the systems
- High-voltage refrigerators
Previous Arrests
This latest seizure follows the arrest of 10 other Chinese nationals in the city of Misrata, who were found in possession of powerful computers for complex mining calculations.
Violation of Law and Impact on Public Resources
The attorney general, Siddiq Al-Sour, vowed to assess the “damage to public money and public interest” as the use of such high-energy devices for mining cryptocurrencies in Libya reportedly breaches monetary policy and puts further pressure on the already strained electricity grid.
“The suspects harnessed high-energy devices, using a substantial amount of resources to mine cryptocurrencies in Libya."
- Libyan Attorney General, Siddiq Al-Sour
Libya’s Significance as a Cryptocurrency Mining Hub
Despite an official ban, Libya remains one of the most significant cryptocurrency mining hubs in Africa, accounting for approximately 0.6 percent of the worldwide Bitcoin production in 2021.
Attractiveness of Cheap Electricity Prices
The country’s cheap electricity prices, around $0.004 per kilowatt hour, have made it a popular destination for miners despite political instability.
Strain on Libya’s Electricity Infrastructure
However, the influx of miners has put further pressure on the already struggling electricity infrastructure. Power outages can last up to 18 hours daily during peak summer months.
Ministry of Justice Investigation and Insights from International Media
The Ministry of Justice has called upon experts to evaluate the overall financial implications of the mining operations on Libya’s economy and its power infrastructure.
Libyans and international media are closely monitoring the latest developments as authorities continue to investigate further.
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