Libya Detains 50 Chinese Nationals In Crackdown On Crypto Mining

Authorities in Libya have detained 50 Chinese nationals following a raid on an illegal cryptocurrency operation. Photos published by the Tripoli prosecutor show large, windowless rooms crammed with hardware and computers in the city of Zliten. On Wednesday, 10 other Chinese people were taken into custody for crypto-mining in the port city of Misrata. Libya banned the manufacturing of virtual currency in 2021.

It’s thought miners are attracted to the country in part because of low energy costs.Prosecutors said in a statement that Interior Ministry agents were searching a farm in Zliten, 160 kilometers (99 miles) east of the capital and found “minors exploiting significant material capacity to generate virtual currencies with the help of 50 Chinese nationals.

Photos and a video from the Tripoli Attorney General Office’s social media page show a dingy-looking, windowless room full of hardware, wires and servers being raided by authorities. Another photo appears to show the outside of the building, which is long and narrow and has dozens of fans at the back of it to keep the servers cool.

On Wednesday, prosecutors said police had dismantled another illegal crypto-mining operation in the port city of Misrata, adding it was operated by 10 Chinese nationals. Libya’s central Bank banned crypto transactions in 2018 because the market had not yet been regulated by the government and there were concerns that it could attract criminals, including terrorist financing.

Crypto coin mining is also illegal in Libya. Yet despite it being outlawed, the cheap electricity in Libya has helped make mining which requires a large amount of electricity  popular in the Maghrebi country. A 2021 study found that 0.6% of all the world's bitcoin mining operations take place in Libya.