Malaysia was rocked by an unexpected discovery on Tuesday, with Bandar Pankak Alam, a explosion and swirling smoke from a home along Loron Sekara Purnama, authorities have revealed illegal Bitcoin mining operations.
The latest developments are as Southeast Asian countries continue to fight against fraudulent crypto mining, causing significant financial losses and tensions in the country’s electricity infrastructure.
Electric fires expose illegal operations
Sungai Buloh District Police Chief, Director Mohd Hafiz Muhammad, was dispatched after 14 volunteer firefighters from Saujana Utama and Bestari Jaya reported the incident to Sungai Buloh District Police Headquarters at 11:41am on February 11. It has been revealed that.
Upon arrival, both firefighters and patrol police officers had to force entry into the vacant home. They were illegally connected to the power grid and had a short circuit that caused a flame.
After the fire was wiped out on Tuesday evening, a joint investigation by police and Tenaga Nacional Belhad (TNB) officials revealed that the house was illegally drawing electricity for Bitcoin mining . Authorities seized nine Bitcoin mining rigs, nine blower fans and a D-Link router.
The latest cases shed light on yet another example of illegal cryptocurrency operations that are frequently growing across Malaysia.
Bitcoin Miner steals electricity in Malaysia
Between 2018 and 2023, Malaysia lost about $723 million due to unauthorized use of electricity for crypto mining. Deputy Minister Akmal Nasir said miners are exploiting unlimited power, but energy providers have a way to detect it. During the October 2022 crackdown, authorities seized and destroyed more than 2,000 approved mining equipment worth $467,000.
Despite these losses, cryptocurrency mining itself is not illegal in Malaysia, but domestic electricity theft is a serious crime that imposes fines or penalties of up to RM100,000 ($21,000) in a five-year prison.
Last August, Malaysian authorities arrested seven individuals (three locals and four foreigners) who allegedly stole electricity for bitcoin mining. The Sepang District Police Chief confirmed that he had no previous criminal history. Authorities seized 52 mining rigs and electronics worth around $57,000.
In the same month, Malaysian authorities destroyed 985, which seized a mining rig worth $452,500 by crushing it with steam rollers. These machines were confiscated during the execution of 2022-April 2024.
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