600 Bitcoin mining machines were stolen in Iceland
About 600 computers in the Icelandic data center that used to be used for bitcoin and other virtual currency “mining” have been stolen, the police said is the largest theft in the history of the North Atlantic island nation. Some 11 people were arrested, including a security guard, who said in Icelandic media that the theft was “the biggest bitcoin theft.”
The total value of these computers is close to $2 million. At present, the police have not found the whereabouts of stolen computers. But if the stolen computers were used for the initial purpose of creating new bitcoin, those thieves could get huge profits without selling them.
Two thefts have taken place in the southwestern part of Lake Jane Peninsula, said Olafur Helgi Kjartansson, district police chief: “This is the worst theft ever made and all the signs point to a highly organized crime Behavior.” Three of the four thefts took place in December and the fourth took place in January, but the authorities wanted to be able to track down those thieves, so the theft information was not made public before.
Bitcoin, a digital currency, has always been a huge source of instability, and the price increases of one day in the past year have been frightening. The price of Bitcoin approached $20,000 at a rocket-like speed at the end of last year, but another big diving occurred early this year. The market price for bitcoin on Friday is around $11,000.
Bitcoin and other cryptocurrencies rely on the blockchain, a distributed ledger for tracking monetary ownership. Bitcoin’s general ledger is backed by “miners,” as they enhance the computing power of the system and get new bitcoin returns. Increasing computing power usually requires more computers and therefore more power.
That demand for electricity led to a bitcoin “gold rush” in Iceland. Traders searching for cheap, renewable bitcoin have flooded Iceland in recent months to take advantage of the geothermal and hydropower stations there. According to an anonymous source in the industry, police tracking the stolen computers are monitoring the electricity consumption in the country in the hope that these thieves will be able to show their tracks. Anonymous because he was banned from disclosing the news to the media.
The high consumption of electricity can mean the location of illegal bitcoin mining. Officials this week called on local network providers, electricians, and organizations that provide storage services to report any unusual energy needs. On Friday, Bank of England Governor Mark Carney sent a devastating attack on cryptocurrencies in the cryptocurrency, such as bitcoin, in Edinburgh, advising regulators around the world to regulate cryptocurrency in a manner that regulates other financial assets.
At the Scottish Economics Conference, Carney said the global frenzy over speculation has prompted the advent of new cryptocurrencies, but they should implement the same standards as other financial systems. Being part of the financial system can give you great privilege, but it also gives them greater responsibility.
Source: nbcnews
