Thailand’s Provincial Electricity Authority (PEA) has taken decisive action by shutting down a Bitcoin mining facility accused of manipulating power meters to steal electricity worth hundreds of millions of baht.
In a coordinated operation with the Crime Suppression Division, the PEA confiscated 996 Bitcoin mining rigs from a facility in the Phanat Nikhom district of Chonburi.
Officials discovered that the operators of this mining farm had altered their electricity meters, enabling them to conduct mining operations at little to no cost, resulting in substantial financial losses for the national electricity provider.
As the investigation continues, the identities of those behind the operation remain unknown, with authorities seeking court-issued arrest warrants.
Reports indicate that the operation was cleverly concealed. A staff member disclosed that the electricity theft occurred primarily at night, with meters appearing normal during daylight hours to avoid detection.
Bitcoin mining is an intensive process requiring significant electrical power to solve complex mathematical problems, validate transactions, and generate new bitcoins. Given the high energy demands, many operators resort to illegal practices to maximize profitability.
A Growing Concern
Illegal mining activities have increasingly plagued Thailand’s power grid, leading to multiple raids over the past year following a surge in mining activities after China’s crackdown in 2021.
In August 2024, the PEA dismantled a similar operation in Ratchaburi when unregistered miners siphoned energy from the local grid, resulting in frequent blackouts and increased expenses for residents.
In another instance, two individuals from Surat Thani province were charged with pilfering over $280,000 worth of electricity to fuel their mining operations in an abandoned location.
Back in 2022, the Department of Special Investigation conducted extensive raids in Bangkok, shutting down over 50 illegal mining operations responsible for stealing more than $10 million in electricity annually.
These unlawful practices are not unique to Thailand. Reports indicate that electricity theft for Bitcoin mining is a global issue; Malaysia’s national electricity provider recently disclosed losses exceeding $100 million due to similar activities.
As these incidents gain attention, governments around the world are ramping up regulations, imposing usage limits, raising tariffs, and enacting outright bans to exert greater control over the crypto-mining sector.
