50 Chinese Nationals Arrested In Libya’s Illegal Crypto Mining Bust

The Libyan attorney general’s office announced on Friday that authorities have arrested 50 Chinese nationals allegedly involved in an illegal cryptocurrency mining operation in the city of Zliten. The arrests were made after the individuals were found running a cryptocurrency mining farm inside an abandoned iron factory on Libya’s western coast.

African country Libyan authorities have arrested 50 Chinese nationals allegedly involved in an illegal cryptocurrency mining operation. Power blackouts last up to 18 hours a day during the summer months, as Libyan authorities intensify their efforts to crack down on such…

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Illegal Crypto Mining Operations

Photos and videos released by the office of the attorney general, Siddiq Al-Sour, showcased the dismantling process of substantial mining systems discovered in Zliten, a city east of Tripoli province. The mining systems consisted of a complex matrix of wires connecting digital conversion systems, data servers, fans, and high-voltage refrigerators. This news comes shortly after the arrest of 10 other Chinese nationals in Misrata on Wednesday. The individuals were caught “red-handed” with dozens of powerful computers used for conducting complex mining calculations. These computers were seized by the authorities.

The attorney general’s office emphasized that these acts of illegal cryptocurrency mining “violate the law” as the alleged perpetrators utilize “high-energy devices that harness a large amount of material to mine cryptocurrencies.” Libyan authorities are currently seeking the assistance of experts to assess the extent of the damage caused to public funds and interests due to the use of such devices, as well as the violation of monetary policy rules.

Despite an official ban, Libya has recorded the highest percentage of cryptocurrency mining across the African continent, accounting for approximately 0.6 percent of the world’s Bitcoin production in 2021. The country’s cheap electricity costs, standing at a mere $0.004 per kilowatt hour, make it an attractive location for cryptocurrency mining. However, this situation has exacerbated the already strained electricity grids in Libya, which suffer from power blackouts lasting up to 18 hours a day during the summer months.

In response, Libyan authorities have intensified their efforts to crack down on illegal cryptocurrency mining activities. Investigations into alleged mining sites in Tripoli and Misrata are ongoing as authorities work towards curbing this unlawful practice that further strains the country’s energy infrastructure.