Crypto News

Unauthorized Crypto miners caught In rural Washington reported that Chelan Public Utility District ordered the suspension of cryptocurrency mining in the area after discovering illegal mining activities on Monday, April 2.

The authorities had already enforced a moratorium on March 19 which was dedicated to crypto mining. It stated to undertake measures like disconnecting services, fines and penalties, “reporting unauthorized loads to law enforcement as power theft” and “firing officials to protect public safety.” Any defaulter hailing from residential areas would have to pay $5,000 and $7,000 to $10,000 if operations were held in a commercial space.

The officers got hooked towards the wellbeing of the state and electricity systems due to numerous cases of illegal crypto mining which were functional in a home, an apartment and mini-storage unit. The mining activities were a potential threat of fire as the workspace was not designed to handle its load.

John Stoll, Managing Director Customer Utility, reported that average monthly consumption of an apartment rose from 500 kilowatt to more than 11,000 kilowatt due to unauthorized crypto mining. Note that crypto miners need energy, high quality equipment and high processing power chips in order to mine the coins. It creates heat in the system which needs an advanced cooling system to keep the equipment running.

Commissioner Garry Arseneault termed culprits as “scoundrels” saying, “What we’re discussing is a person who is purposely trying to slip around the end and use power in a way that a facility was not designed for and doing so in a manner where there’s been no request for service to meet that kind of demand. I see yet, once again, a reason to support the installation of automated meters to be able to confront these scoundrels before they do burn an apartment building down and perhaps kill a family or children in the process.”

The step taken by the PUD commissioners are focused on preventing any hazardous situation caused due to overloaded grid equipment and risks of fire. Moreover, these actions will save a considerable amount of money spent on tracking unauthorized crypto operations.

In a recent study, it was found that miners were fleeing towards smaller cities to save the costs involved in generating virtual currency. Their actions are the main reason for towns to struggle in keeping up with electricity demands.

In order to combat the situation, an 18-month moratorium was imposed on bitcoin mining by the city council of Plattsburgh, NY. Overload in power grids occurred in Douglas County, WA this January. The authorities had to power the data centers with added 100 megawatts to meet their demand.

On the other hand, bitcoin miners have also plugged into forgotten industrial towns to meet their electrical needs. A news in, Coinmint, a bitcoin mining company, has taken over the 1,300 acres of the leftover site of the former owner Alcoa in Massena, New York. The company aims to use the property to mint virtual currencies on a scale larger than ever.

Bitcoin mining has a huge toll on the electricity authorities around the world. With the increase in bitcoin miners, it is necessary for authorities to launch strict guidelines to save the normal people from harassment.