Bitcoin miners steamroll after power theft, exchange ‘shutdown’ scam: Asia Express

Asia's weekly news roundup reviews the industry's most important developments.

Southeast Asian power struggles with Bitcoin miners

Southeast Asia has become a hotbed of Bitcoin mining after the 2021 Great China invasion. Authorities in various states are now fighting the rampant theft of electricity used to fuel these mining operations.

Malaysian authorities this week arrested seven individuals suspected of using stolen electricity to illegally mine bitcoins, state media Bernama reported.

Police seized 52 mining rigs with an estimated value of 250,000 ringgit or $57,000 along with electronic equipment and a pair of vehicles.

But this is only the tip of the iceberg of the Bitcoin mining issue of electricity theft in tropical Asia.

In July, Malaysia's Deputy Energy Minister reported that illegal crypto-mining operators had stolen an estimated $723 million worth of electricity between 2018 and 2023.

And the Malaysian authorities are very good at dealing with confiscated mines.

They used a steamroller to crush nearly 1,000 bitcoin miners worth an estimated $452,000. In the year This show echoes the same trend as 2021, when $1.25 million worth of mining rigs are destroyed.

In Southeast Asia, similar risks are being observed after migrant miners from China took refuge in neighboring countries.

Local media reported that mining rigs valued at more than $5.8 million were seized in Thailand in April during an investigation into electricity theft. The raids were conducted after the authorities noticed unusually high electricity consumption in certain areas.

Indonesia has also been struggling with this problem. In the year In December 2023, Indonesian police shut down 10 mining sites accused of stealing more than $1 million worth of electricity.

In Laos, the state energy distributor suspended electricity supplies to crypto miners earlier this year. The reason for the ban was insufficient domestic power generation, exacerbated by the drought in the first half of 2023. However, the worker said another reason for the ban was miners' inability to pay their bills.

MGPerak: Police Lupus Bitcoin equipment worth almost RM2 million

PARIT – The Perak District Police Headquarters (IPD) on Monday will remove 985 devices used in Bitcoin mining operations worth RM1.98 million.

Central Perak District Police Chief… pic.twitter.com/hDSzN8aGNa

— Malaysia Gazette (@MalaysiaGazette) August 19, 2024

NFTs have experienced a cultural shift in China

Beiwen Digital, a Beijing-based cultural investment development group, and Hong Kong-based state-owned JME Capital announced on Aug. 21 that the collaboration will be called the “NFT 2.0 era.”

This initiative aims to digitize some of China's most recognized cultural assets through intangible token technology and distribute them globally.

Their portfolio includes treasures such as the Up River, the Twelve Heads of the Zodiac, Mount Yutai, and the Temple of Heaven during the Qingming period.

These assets will be turned into digital aggregators, with plans to launch NFTs in Hong Kong, a city seen as an economic gateway to Chinese markets.

China's enthusiasm for blockchain technology has been consistent, despite the government's cold stance on cryptocurrencies.

Despite recent speculation that China may reconsider its ban on cryptocurrencies, prompted by a tweet from President Justin Sun, the country remains steadfast in its ban.

Recently, cryptocurrency transactions were officially classified as money laundering schemes by the Chinese Supreme Court.

Meanwhile, the global NFT market is experiencing a downturn. Prices for some of the world's most expensive NFTs have plummeted, with the floor price of the so-called blue-chip board up Yacht Club dropping more than 91 percent, CoinGecko reports.

Similarly, CryptoPunks saw a 78% decrease.

South Korea's latest exchange closing scam

South Korea's Financial Supervisory Service has issued a consumer alert in response to fraudsters impersonating cryptocurrency exchanges that are on the brink of being shut down.

Scammers are sending messages to victims asking them to withdraw cryptocurrency from accounts that are supposedly dormant in the exchange. The messages warn that the properties will “burn” due to the closure of the business. However, these properties are not real.

The victims are directed to a link that leads them to a fake customer support group chat to build the trust of the victim.

The scammers trick victims by providing doctored screenshots showing large crypto balances ready to be withdrawn. Then they ask for a bank transfer for payment and taxes or even more crypto transfers.

This scam is particularly plausible given the current regulatory environment in South Korea.

In the year On August 22, financial authorities began on-site inspections of cryptocurrency exchanges under the country's new crypto law that took effect on July 19. These inspections are part of a broader initiative to crack down on suspicious cryptocurrency transactions.

Elsewhere in Asia, cryptocurrency exchanges are facing increased regulatory scrutiny. According to a Bloomberg report, 11 crypto exchanges awaiting full licensing in Hong Kong have experienced delays after the Securities and Futures Commission found unsatisfactory practices during an inspection of its own site.

Metaplanet continues Binge Bitcoin

Japanese investment company Metaplanet is living up to the nickname “Asia Micro Strategy” by buying another round of Bitcoin.

In the year On August 20, the company bought 57,273 bitcoins for 500 million yen ($3.42 million), increasing its holdings to 360,368 bitcoins.

The acquisition follows Tokyo-based Bitcoinholic's announcement of a 1 billion yen shareholder loan in early August.

Metaplanet's bitcoin holdings pale in comparison to US investment firm MicroStrategy, which holds 226,331 bitcoins.

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John Yun

Yohan Yun is a multimedia journalist who has been reporting on blockchain since 2017. He has contributed to the crypto media outlet Forkast as an editor and covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking and experimenting with new recipes.