[2018-11-17] Two Bitcoin Mining Companies Disappear From Sweden Owing $1.5M

bbc.reporter

legendary

Activity: 3122

Merit: 1492

Quote from: gentlemand on November 18, 2018, 07:12:56 AM

I'm surprised there hasn't been more of this really.

In the UK you get gangs renting houses, filling them with weed growing and then disappearing with their haul before the police and bills arrive. Perhaps we'll get more rogue miners milking electricity companies in the future.

'Free' electricity is a huge incentive.

I reckon setting up a scam bitcoin mining farm would not be worth the risk similar to those UK gangs renting houses and leaving. The operators have to apply for business permits, pass all the legal documents, set up the mining farm and look for a cheap electricity supplier overseas.

It is possible that they started legitimately.

pixie85

hero member

Activity: 2184

Merit: 531

Quote from: gentlemand on November 18, 2018, 07:12:56 AM

I'm surprised there hasn't been more of this really.

In the UK you get gangs renting houses, filling them with weed growing and then disappearing with their haul before the police and bills arrive. Perhaps we'll get more rogue miners milking electricity companies in the future.

'Free' electricity is a huge incentive.

I know people who got disconnected by electric companies for not paying the bills and they climbed the poles and connected the cables themselves. In India everybody connect themselves I bet they're stealing power as we speak and some of them got the idea to use stolen power to mine cryptocurrencies. We only hear about those who got caught. Most get away with it.

Thekool1s

legendary

Activity: 1512

Merit: 1218

Change is in your hands

Quote from: gentlemand

I'm surprised there hasn't been more of this really.

TBH we won't see it much, mining rigs aren't that "mobile". Even if you have got something like those ship containers, Trying to get into a contract and moving the hardware around can be quite a hassle. Especially with Importing and exporting these containers. There is just too much legal work involved Unless obviously, you land a contract like this where you are allowed to build a debt of 1.5 million dollars.

buwaytress

legendary

Activity: 2968

Merit: 3684

Join the world-leading crypto sportsbook NOW!

I wouldn't really call them Bitcoin-related crimes. The nature of business had little to do with the modus operandi of the business crime - which is basically just stealing electricity and defaulting on rent/debt/loans while raking in the profits from business in the few months of operations they manage to handle. It's really quite a common commercial crime, least in my country.

Quote from: gentlemand on November 18, 2018, 07:12:56 AM

I'm surprised there hasn't been more of this really.

In the UK you get gangs renting houses, filling them with weed growing and then disappearing with their haul before the police and bills arrive. Perhaps we'll get more rogue miners milking electricity companies in the future.

'Free' electricity is a huge incentive.

Happens exactly the same in my place, but for all kinds of agriculture haha. There's even gangs renting entire shophouse lots, they have these noise generators that attract swallows to roost and they collect birds nests for their saliva. Electricity only gets cut off after about 3 months of defaulting, which is apparently all the time they need for 1 harvest. I can imagine mobile mining setups just tapping into powerlines, especially in rural areas where the lines run through sparsely populated areas with foliage providing natural camouflage. Abnormal power usage would probably tip people off, but can easily see rogue power providers selling off cheap electricity especially with huge hydro countries... Georgia, Armenia also come to mind.

gentlemand

legendary

Activity: 2590

Merit: 3015

Welt Am Draht

I'm surprised there hasn't been more of this really.

In the UK you get gangs renting houses, filling them with weed growing and then disappearing with their haul before the police and bills arrive. Perhaps we'll get more rogue miners milking electricity companies in the future.

'Free' electricity is a huge incentive.

Betwrong

legendary

Activity: 3374

Merit: 2198

I stand with Ukraine.

I'm wondering is it really possible for a Miami-based company to "disappear" like that? I mean, $1.5 million is big money and I think FBI will be cooperating with the Swedish Police on carrying NGDC before justice. From what I know, the Convention on Extradition between the United States of America and Sweden was signed in October 1961, and I think the agreement is still in effect. I will be really surprised if NGDC will get away with it.

bbc.reporter

legendary

Activity: 3122

Merit: 1492

@Thekool1s. It certainly is the bear market that are causing some miners to close down and run. I am not defending the them, however mining's breakeven price cost is higher than bitcoin's trading price and it might become either another cause of worry or FUD hehehe.

rodskee

full member

Activity: 2520

Merit: 204

Really a questionable thing why such provider do let themselves fooled by those people.3 months pending of payment or bill is too much because on our country 1 month arrears
would be already subjective to disconnection but this one reaches out million dollars on debt. Provider do really have some mistake on here.
[/quote]

That's true and correct it's impossible 3 months dealy of payment electric bill it's obvious the statement was lie
Herein my country have a due date for electricity bill one week after the due date have a notice from the electric company for disconnection and if they didn't comply automatic disconnected.

milewilda

legendary

Activity: 3094

Merit: 1127

Quote from: Thekool1s on November 17, 2018, 10:27:44 AM

It's funny how they are trying to gain sympathy for the scammers by blaming the bear market for their exit. Pathetic Reporting as usual. Also, I don't get why the electric company allowed them to build up such debt. My provider would have removed me from the grid if I didn't pay for 3 months. I kinda blame them, even if they had a long-term deal. I would have always preferred a payment every 3 months to reduce the risk.

Really a questionable thing why such provider do let themselves fooled by those people.3 months pending of payment or bill is too much because on our country 1 month arrears
would be already subjective to disconnection but this one reaches out million dollars on debt. Provider do really have some mistake on here.

Thekool1s

legendary

Activity: 1512

Merit: 1218

Change is in your hands

From the article:
- Victims of the cryptocurrency bear market, two cryptocurrency firms have disappeared from Sweden.
- NGDC and Chasqui Tech, the two companies in question, abandoned Sweden without paying their rent and electricity bills.

Read more: https://www.cryptoglobe.com/latest/2018/11/two-bitcoin-mining-companies-disappear-from-sweden-owing-1-5m/

It's funny how they are trying to gain sympathy for the scammers by blaming the bear market for their exit. Pathetic Reporting as usual. Also, I don't get why the electric company allowed them to build up such debt. My provider would have removed me from the grid if I didn't pay for 3 months. I kinda blame them, even if they had a long-term deal. I would have always preferred a payment every 3 months to reduce the risk.

Topic: [2018-11-17] Two Bitcoin Mining Companies Disappear From Sweden Owing $1.5M (Read 219 times)