Fire at Fire at South Korean Crypto Mining Facility Destroys 110 Rigs, Causing Significant Damage Crypto Mining Facility Destroys 110 Rigs, Causing Significant Damage
A fire at a crypto mining centre in South Korea destroyed approximately 110 mining rigs, according to firefighter reports on June 24.
A fire at a crypto mining centre in South Korea destroyed approximately 110 mining rigs, according to firefighter reports on June 24. The blaze broke out in the Samcheon District of Wansan Neighborhood in Jeonju, South Jeolla Province, and was extinguished within 50 minutes. At the time of the fire, only 30 of the rigs were operational.
Investigating the Cause of the Fire
Authorities reported that the fire began at 12:36 am and caused significant property damage, estimated at over 9 million won (around $6,481).
The fire destroyed part of the building, totalling 33 square meters, along with all 110 mining rigs. Police and fire officials are investigating the cause of the fire, interviewing witnesses, and examining the scene. Early indications suggest that arson is unlikely.
Despite high summer temperatures in Jeonju, which can reach up to 31°C in August, the temperatures on the day of the fire ranged between 25°C and 27°C, making it unlikely that heat alone caused the blaze.
Challenges for Crypto Mining in South Korea
While cryptocurrency remains popular in South Korea, large-scale industrial crypto mining operations are rare due to high energy costs.
Gas prices for industrial use have increased significantly in recent years, and household gas prices have also risen by almost 25%. Additionally, the government raised electricity rates in 2023, with further increases anticipated.
Incorrect. While the Germany Industrial Production Index is down, the actual factors where high Gas prices for processes that have to use gas (eg plastics), subdued global demand, and high interest rates
— Jeremy (@kelaher) June 21, 2024
Many South Korean crypto mining collectives have turned to overseas projects to mitigate these costs. However, the local crypto community has also faced issues with scams, including fraudulent mining-related schemes. In 2023, police warned of a rise in crypto mining-themed dating scams, where victims were persuaded to invest in fake overseas mining pools.
In conclusion, the recent fire at the South Korean crypto mining centre highlights both the physical risks and economic challenges faced by the industry.
As authorities continue to investigate the incident, the focus remains on ensuring safety and transparency in crypto mining operations.
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