South Korea Arrests 14 On Suspicion Of Discount Bitcoin Mining

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by Coin AIO 1068 views 582

South Korean authorities have arrested 14 operators allegedly involved in illegally subsidized Bitcoin mining, local media outlet Yonhap reports April 1.

As local media outlet Yonhap News Agency reports, police arrested 14 people suspected of running Bitcoin mining setups using unfairly subsidized electricity since May 2017.

A total of 13 companies were complicit, each using up to 350 machines to mint bitcoins with an energy discount of 10%.

“These companies were found to be able to use electricity at a price 10% lower than that charged for general purposes, as well as rent factory space at a low price,” Yonhap continues.

The events underscore what continues to be a sore point for jurisdictions around the world regarding cryptocurrency miners.

As Cointelegraph reported, lawmakers in several US states and Canada have criticized the lack of perceptible benefits new mining companies bring to them in return for requesting cheap power. 

China has significantly scaled back its previously buoyant subsidized mining market, while South Korea continues to push forward with regulatory changes affecting various spheres of the cryptocurrency industry.

The arrested miners meanwhile appear not to be facing significant punishment, with fines on the horizon, according to Yonhap.

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