Police unplug 10 illegal bitcoin mines in Kanchanaburi

Police dismantled 10 illegal Bitcoin mining operations in Tha Muang, Kanchanaburi, uncovering extensive electricity meter tampering that caused state losses exceeding 20 million baht. They found sophisticated electronic devices and modified computers used for the illicit activity.

Yesterday, October 9, officers from the Department of Special Investigation (DSI), led by Police Lieutenant Colonel Yuthana Praedam, collaborated with officials from the Provincial Electricity Authority and local police to inspect a residence in Tha Muang, Kanchanaburi.

The investigation revealed that digital currency, specifically Bitcoin, was being mined unlawfully, with electricity meters altered to underreport usage, resulting in bills of just 100 to 400 baht (US$3 to US$12) per month. This discrepancy led to a monthly loss of approximately 250,000 baht (US$7,500) for the electricity authority.

The inspection at a single-story concrete house uncovered numerous modified computers housed in ice containers. Officials seized these devices, along with electronic equipment found attached to a power pole outside the house. The meters had been tampered with using glue to slow their rotation.

According to the DSI, the electronic equipment discovered included a remotely controlled device that could manipulate the metre from inside the house. Electricity Authority officials admitted this was the first time they had encountered such sophisticated tampering equipment, which required specialised expertise beyond their capabilities.

All electronic equipment was confiscated and stored at Tha Muang Police Station. The homeowner was taken into custody for questioning and initially charged with theft.

Bitcoin mining

Lt. Col. Yuthana stated that the Technology and Information Case Division, in conjunction with the electricity authority and Tha Mueang police, targeted the house based on clues from electricity officials who suspected illegal electricity use for digital currency mining. The team secured search warrants from the Kanchanaburi Criminal Court to inspect ten locations.

The first site revealed 10 to 12 cryptocurrency mining machines, each with a power consumption of approximately 3.6 kilowatts. Police are calculating the total benefits reaped from the illegal activity. So far, around 70 machines have been found across the 10 locations.

Further investigations will target an additional five locations. Police aim to identify those behind the operation and any residents involved. Preliminary charges include theft during both day and night. The origins of the mining machines will also be scrutinised, as they may have been imported illegally, potentially complicating the case further.

An electricity authority representative explained that each machine consumes 3.6 kilowatts or 3,600 watts per hour. Twelve machines could cause approximately 250,000 baht in monthly losses, yet the operators paid only a few hundred baht in electricity bills. Across multiple sites, the total monthly loss could approach 20 million baht (US$600,000), reported KhaoSod.

The investigation began when the electricity authority noticed abnormalities in their data. Meters are randomly inspected, and anomalies prompt collaboration with the DSI. The widespread nature of the issue necessitated this joint effort. The primary concern was the tampered meters, with devices drilled and circuits altered to underreport usage, said an electricity authority official.

“We calculate losses based on engineering principles, assessing the value of the tampered meters. We detected unauthorised modifications, including drilling the meter’s back and altering its internal circuits to misreport power usage.”