Home
News
- 1 The miners were reportedly stealing electricity for the last six months.
- 2 Total electricity consumption surpassed a Billion Indonesian rupiah ($65K).
In an electricity theft in Medan, Indonesia, North Sumatra Police arrested 26 people from 10 different locations across the country. They also seized 1,134 crypto mining rigs mining Bitcoin (BTC), the largest cryptocurrency in the market. The digital asset uses an algorithm called proof-of-work (PoW), which is notorious for consuming electricity in vast quantities.
Crypto Miners Drew Power From PLN Poles
A local news media Detik Sumut first reported the incident. North Sumatra Police Chief Inspector General Setya Imam Effendi said during a conference, “Yesterday we took action related to electricity theft. We took action against this theft at 10 points where we know that the stolen electricity was used to power the Bitcoin machine.”
The miners were reportedly stealing electricity for the last six months from PLN poles. Former Riau Police Chief Agung notes, “This mode is a neat mode, because then as we can see here, this is the box, the PLN box, but then the electricity flow in it is not the electricity that should go into the box and is counted with a meter. Then what they take is the one above that, where electricity is taken directly from the pole and channeled inside.”
All in all, electricity consumption surpassed a Billion Indonesian rupiah ($65K). Agung explains, “From these 10 points, PLN lost Rp. 14.4 billion due to electricity theft. We hope that the public understands that industry or business activities must follow the provisions regarding the use of PLN electricity.”
He concluded that, “We are committed, PLN and the National Police, whoever is involved in this electricity theft case, we will take action, all are equal in the eyes of the law. Please take time for this process because this is related to the Electricity Law which we apply is Article 51 of Law number 30 of 2009.”
Similar to most of the countries across the globe, Indonesia too hasn’t laid down any proper regulations for cryptocurrencies in place. Although the nation is not exactly a crypto hub, adoption is growing at a faster rate in the region and can be traded as a commodity. Moreover, Indonesia’s Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – “BAPPEBTI”) has approved over 200 cryptocurrencies for trading in the country.
According to Statista, a business data aggregator, nearly half a Million Indonesians were using cryptocurrencies in 2021. Total volume peaked at 860 Trillion Indonesian rupiah (nearly $65 Million) during the year. November 2021 marked a new milestone for the crypto industry as total market capitalization reached $3 Trillion.
Earlier this December, a similar case sprung up in Minnesota, United States, where a couple of Bitcoin miners were drawing thousands of dollars worth of electricity. The culprits escaped before the authorities arrived. Joel Fremstad, a lawyer representing the local electricity provider, said “He knew what he was doing, whether he made all the physical connections or just the ‘general contractor’ for this, that’s what we don’t yet know.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
