10 Chinese Nationals Arrested in Crypto Mine Raid in Libya

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Cryptocurrency mining is illegal in Libya [Getty]Prosecutors in the Libyan town of Zliten have arrested 10 Chinese nationals for setting up an illegal crypto-mining operation at a disused iron factory on Libya’s west coast.

Photos and videos posted online by the office of Libyan Attorney General Siddiq Al-Sour show officials dismantling huge treatment systems discovered in the town of Zliten, east of Tripoli province.

We are investigating two cryptocurrency mines in the jurisdictions of Tripoli and Misrata, the attorney general’s office said in a Facebook post.

10 Chinese nationals were apprehended, who were found in possession of the computers performing complex calculations.

The devices and equipment found were seized pending further investigation and the Chinese nationals taken into custody, the statement said.

Cryptocurrency mining is officially banned in Libya but has grown in popularity despite the ban, with Libya accounting for around 0.6% of all Bitcoin in the world according to a study in 2021 – the highest percentage in the entire world. ‘Africa.

Libya’s low electricity costs – $0.004 per kilowatt-hour, about 40 times cheaper than in the United States – make the country ideal for the high energy consumption needed to operate crypto mines.

Bitcoin mining requires huge amounts of computing power, which in turn requires large amounts of electricity.

But as Libya continues to struggle with power outages that last up to 18 hours a day during the summer, authorities are trying to clamp down.

Tripoli-based disputed Libyan Prime Minister Abdulhamid Dbeibah even blamed the power outages on massive energy consumption by bitcoin farms across the country.

Libya is a key global hotspot for digital currency factories, Dbeibah said in July last year, promising to limit their energy consumption.

However, with Libyan power capacity meeting only two-thirds of peak summer demand in recent years, cracking down on crypto-mining companies will only partially solve the problem of chronic underinvestment in the Libyan power grid.

Cryptocurrencies have grown in popularity in recent years, but remain closely associated with illegal transactions, such as drugs, guns, false documents, and even illegal pornography.

However, more attention is being paid to virtual currency by legitimate financial organizations, and some central banks are beginning to explore how they can take advantage of Bitcoin’s growing popularity.

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