Crypto Mining Farm with More Than 2500 Rigs Shuts Down In Kyrgyzstan

Cryptocurrency News

An illegal crypto extraction farm was identified by the law enforcement agencies in northern areas of Kyrgyzstan. Officials from the enforcement agencies proceeded to shut down the mining facility at the spot and took more than 2500 mining rigs into their possession. The relevant authority in the area suggested that the mining facility cause huge colossal loss to the national exchequer.

Kyrgyzstan has transformed into a crypto-friendly state in the Central Asian region. This is so because its neighboring countries too are fishing the crypto miners getting kicked out of mainland China. In Kyrgyzstan, there are benefits for the state as well as for the miners as well. As regards the benefits of miners, they are utilizing power at cheaper rates. As for Kyrgyzstan, the country has been collecting extra money by selling electricity to miners at rates higher than usual commercial rates.

However, since a vast number of miners have shifted into Kyrgyzstan, the authorities there are blaming miners for the high consumption of electricity. The situation has become worse than expected because the authorities are expecting a power deficit. In an effort to minimize the high consumption of electricity, the Government in Kyrgyzstan had increased tariff rates, especially for crypto miners. Even the increase in tariff didn’t do much for minimizing the use of electricity sources. Such is the situation in the neighboring countries of Kyrgyzstan. The neighbors too are blaming the mining industry and their activities for the shrinkage of electricity sources. They are however introducing laws for declining the usage in their regions.

Similarly, Kyrgyzstan Government too has decided to initiate crackdown operations against illegal miners. The first mega illegal crypto farm was identified and raided in early May 2021. At that time authorities busted a farm that housed some two-thousand mining rigs. Similar action has been taken recently as well. At this time, the authorities got their hands on another illegal farm which is bigger than the one used in May 2021.

The authorities informed that the farm was minting crypto coins in the area of Druzhba, Kyrgyzstan. The officials who raided the illegal farm were from the National Security’s State Committee. When the officials reached the site, they found more than 2500 active mining rigs which were extracting cryptocurrencies. The people who were running the facility when saw the Committee’s officials tried to escape from the scene. Some of them however succeeded while the rest were caught and handcuffed. As regards the mining machines, they were all taken into Committee’s custody as seized goods.

The Committee told the press that the mining farm belonged to individuals who were nationals of foreign states. They had acquired long-term visas as they wanted to bring foreign investment into the country. The relevant embassies of foreign nationals too have been informed that the authorities have arrested their citizens.

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