Law enforcement authorities in Kyrgyzstan have reportedly detected an illegal cryptocurrency mining farm on the territory of a local free economic zone (FEZ).

The State Service for Combating Economic Crimes, an anti-corruption service in the Kyrgyz Republic, has reportedly discovered a large-scale mining farm at FEZ Bishkek. Kyrgyz authorities posted a video of the facility on YouTube on Aug. 7.

Government officials are involved

During on-site inspections, local enforcement officials found crypto mining devices connected to electricity and the Internet. According to local news agency 24.kg, authorities have launched an investigation into the origins of miners and energy sources.

Members of local government organizations and executives from the FEZ were allegedly involved in running and covering up the illicit crypto mining facility.

Located in the capital of the Kyrgyz Republic, FEZ Bishkek is a territory for the creation and expansion of private business in the Kyrgyz Republic. 

According to its website, FEZ Bishkek has been running for more than 20 years to date. 

Kyrgyzstan is a popular site for global crypto mining firms

Known for its cheap energy prices, Kyrgyzstan has emerged as a popular destination for global cryptocurrency mining firms. In 2019, local energy officials announced that the government cut off power to 45 crypto mining firms as they consumed more energy than three local regions combined. In July 2020, Kyrgyzstan’s Parliament considered a bill to tax and regulate crypto mining activities to increase government revenue from the emerging industry.