South Korea's Crypto Mining Center Fire Destroyed 110 Machines

JAKARTA - In the early hours of June 24, intense fires hit a crypto mining center in Samcheon district, Jeonju, South Jeolla Province. Firefighters confirmed that about 110 crypto mining machines were destroyed by this fire.

According to CryptoNews information, the fire broke out at 12:36 a.m. and was successfully extinguished in about 50 minutes. Emergency officers were immediately dispatched to the location after receiving reports of a fire in a building known to be filled with a crypto mining engine.

According to MBC News and JTBC, only 30 of the 110 engines were operating when the fire broke out. Some buildings, covering an area of about 33 square meters, were destroyed by the blaze. The local fire department estimates material losses due to the fire reached more than 9 million won (approximately Rp 106 million).

The police and firefighters are still investigating the exact cause of the fire. They are interviewing witnesses around the scene for further information. However, firefighters claim that most likely this fire was not caused by intentional arson. Until now, there has been no information about the type of coin mined by these machines.

The summer temperature in Jeonju this week ranges from 25 to 27 degrees C. This hot weather condition may contribute to the risk of fire in crypto mining facilities.

Large-scale crypto mining is rarely found in South Korea, although the popularity of crypto is quite high in the country. One of the main reasons is the high cost of energy. Industrial gas prices have risen sharply in the decade, and household gas prices have also soared nearly 25% in recent years. The South Korean government has also raised electricity rates by 2023, and it is expected that there will be another price increase next month, according to Chosun's report.

As a result, many crypto mining collectives in South Korea choose to invest in mining projects abroad. On the other hand, the crypto community in South Korea has also been subjected to fraud related to fake crypto mining projects.