A fire at a South Korean crypto mining center on June 24 destroyed approximately 110 mining rigs, as confirmed by firefighters. The blaze, which started at 12:36 am, was extinguished within 50 minutes. The incident occurred in a building in the Samcheon District of Wansan Neighborhood, Jeonju, South Jeolla Province.
Details of the Incident
- Extent of Damage: About 33㎡ of the building was destroyed, resulting in property damage estimated at over 9 million won (around $6,481).
- Cause: The exact cause of the fire remains under investigation. However, arson has been deemed unlikely by officials.
- Operations Affected: At the time of the fire, only 30 of the 110 rigs were operational.
Context
- Crypto Mining in South Korea: Large-scale crypto mining operations are rare in South Korea, partly due to high energy costs. Industrial gas prices have surged this decade, and household gas prices have risen by nearly 25% in recent years. Additionally, electricity rates were increased in 2023, with further hikes anticipated.
- Overseas Investments and Scams: Due to high domestic costs, South Korean crypto mining collectives often invest in overseas projects. However, the community has also been targeted by scams, including crypto mining-themed dating scams that encourage investments in dubious overseas mining pools.
Temperature Considerations
- Weather Impact: Summer temperatures in Jeonju can reach up to 31°C in August, which may have implications for crypto mining operations. This week, temperatures have been between 25°C and 27°C.
In summary, while the fire's exact cause is still unknown, it highlights the challenges faced by crypto mining operations in South Korea, including high energy costs and increasing electricity rates. The incident also underscores the importance of safety and security in mining facilities.
