Bitcoin mining machines worth THB200 million seized in two provinces

The alleged bitcoin miners were accused of stealing electricity, and inflicting more than 5 million baht in losses to the electricity authority.

Cyber police and officials from the Provincial Electricity Authority jointly conducted an investigation into the technology-related crime. They reportedly discovered investment fraud in the purchase or leasing of cryptocurrency mining power through cloud mining schemes, resulting in widespread financial losses.

Police investigation found offers for bitcoin mining machines at prices significantly below market value, raising suspicions. Additionally, there were offers to hosts these mining machines, charging low fees for maintenance and electricity.

Authorities are also investigating the legality of the imports of the machines.

Police revealed that the transactions for the buying and selling of bitcoin mining machines and hosting of mining operations was conducted at the vegetarian canteen of a shrine in Ban Phaeo district, Samut Sakhon province. When the authorities launched an investigation into the matter, they also reportedly found abnormal electricity consumption at the location.

The individual involved in selling and accepting deposits for the mining machines was identified as Somwang (full name not revealed). Further investigation revealed that apart from the shrine premises, mining activities were also conducted at two warehouse locations in Muang district of Ratchaburi province. Upon inspection, abnormal electricity usage was discovered at these sites as well. Search warrants were sought from the court for both locations.

On Friday, officials conducted searches at both locations. At the shrine, Mr Sombhat (full name not revealed) was identified as the person in charge. During the search, 187 bitcoin mining machines were discovered, engaged in mining. The officials reportedly found tampering of electricity meters.

At the second location, in Ratchaburi province, Somwang was identified as the person responsible for overseeing the mining operation, while Kiatkong (full name not revealed) was responsible for supervising the mining machines. Officials found 465 bitcoin mining machines in operation. It was found that there had been tampering with the electricity meters. Legal proceedings were initiated by law enforcement officers.

The suspects reportedly told the police that they were engaged in selling bitcoin mining machines, which were imported from China through proper customs procedures. These machines were then sold to the general public. As part of the deal, customers who purchased the mining machines would be hosted, including electricity costs, for 6,200 baht a month. Both the mining sites had been operating for around two months.

The officials said that such bitcoin mining machines if operational throughout the month would normally incur monthly electricity costs of around 9,000 baht per machine.

Electricity officials reported that alleged illegal modifications had been made to the electricity meters, as a result the actual usage could not be recorded. Some parts were connected to bypass the meters. Preliminary calculations estimated the revenue loss at both locations at around 5 million baht.

Further investigation regarding the import of the bitcoin mining machines will be carried out by the Customs Department. The seized items included various models of bitcoin mining machines, valued at approximately 350,000 baht each.