Central Washington Utility In Pursuit Of ‘Rogue’ Bitcoin Miners
Listen
A public utility in north central Washington wants to root out a new kind of outlaw: the rogue bitcoin miner.
Bitcoin “miners” don’t wear hardhats or carry pick axes. Rather, they lend computing power to earn virtual currency. Their specialized computers process and record network transactions 24/7. In the Pacific Northwest, bitcoin operations are concentrating around The Dalles, Moses Lake and the Wenatchee Valley to take advantage of cheap hydropower.
Chelan County Public Utility District managers say some miners are creating power spikes and fire risk by secretly setting up in apartments, vacant businesses and mini-storage units—places frequently unsuited to high-demand, nonstop electricity use.
This week, the Chelan County PUD board directed their staff to take “all necessary steps” to hunt down and shut down unauthorized bitcoin operations.
“Not only are we concerned, we’re incensed that individuals are putting people at risk,” Commissioner Steve McKenna said on Monday. “We’re not going to tolerate it. This is a strong message, and I want to make that very clear.”
Steps that the utility staff can take to uncover rogue miners resemble strategies used in the past to detect illegal indoor marijuana grows. These include monitoring for extraordinary, sustained electricity usage spikes.
When the PUD discovers unauthorized cryptocurrency operations, it can disconnect service and potentially report unauthorized loads to fire officials and to law enforcement as power theft because the specific commercial use should have a higher rate.
The PUD commissioners said they also want to explore new fees or penalties to impose on rogue miners who overload circuits and threaten the safety of the electric grid.
There are legitimate operators in this sector who obtain permits and inspections before switching on their mining rigs. One of these entrepreneurs, Salcido Enterprises CEO Malachi Salcido, said in an interview Tuesday that he was pleased that Chelan County PUD was separating the bad from the good.
Note: This story has been updated with additional background.
Copyright 2018 Northwest News Network
Related Stories:
Honey, Please Stop At The Grocery To Pick Up Some Bread, Milk And… Bitcoin?
West Coasters may soon be able to pick up bread, milk and, yes, bitcoin, at their local supermarket.
China-Based Cryptocurrency Firm Establishes Foothold In Central Washington
One of the biggest players in the global cryptocurrency space has established a foothold in the Pacific Northwest. China-based Bitmain Technologies held a ribbon cutting for a $20 million data center near the Wenatchee airport on Friday. A celebratory mood ran through the grand opening despite headwinds besetting the virtual currency sector.
Higher Electric Rates May End Central Washington Bitcoin Rush
In the last few years, rock-bottom electricity rates have attracted bitcoin miners and other virtual currency entrepreneurs to central Washington state. But in Chelan and Grant counties, that lure may be on the wane because of looming power price hikes.
