Libyan authorities announced on Thursday the dismantling of a clandestine cryptocurrency mining network in the west of the country and the arrest of fifty Chinese nationals involved in this illegal activity in Libya.
During a search conducted at the request of the Tripoli prosecutor in a farm in Zliten, 160 km east of the capital, agents of the Ministry of the Interior discovered "minors exploiting significant material capacities to create virtual currencies with the help of 50 Chinese nationals who were arrested to be heard", according to a statement from the prosecutor's office.
A video posted on the prosecutor's Facebook page shows buildings without windows, with only dozens of fans and large amounts of computer equipment of all kinds littering the floor.
Energy-intensive servers
On Wednesday, the prosecutor's office announced the dismantling of another clandestine cryptocurrency mining workshop operated by ten Chinese in Misrata (east). These kinds of sites, which usually operate 24/24, require power-hungry servers, a stable and fast connection and expensive equipment in a country where power cuts are recurrent and internet speed is insufficient and irregular.
According to the specialized firm Digiconomist, the mining or creation of a bitcoin, the most popular cryptocurrency in the world, requires about 1,150 kilowatt hours.
Several countries have already banned cryptocurrency mining, including China. It was, by far, the world leader in the creation of virtual currencies until June 2021, the date of suspension. In Libya, still in full legal uncertainty on cryptocurrency, the Central Bank (BCL) had banned in 2018 any transaction - demining, buying or selling - in virtual currency in Libya, pending legislation.