Blast Uncovers Illegal Bitcoin Mining in Malaysia

A fire in Bandar Puncak Alam area, Malaysia, has unearthed an illegitimate Bitcoin mine activity, uncovering another instance of crypto-related power theft in the country. &nbsp,

On Tuesday, smoke and flames erupted from a home on Lorong Cekara Purnama, prompting a distress call from a local citizen at 11: 41 am, local media reported.

After the fire was extinguished at 4: 45 am, researchers found a powerful illegal installation: nine Bitcoin mining rigs, fan fans, and a D-link router—all connected to an unauthorized energy source.

The illegal mining setup adds to Malaysia’s growing problem with crypto-related power theft, a challenge authorities have struggled to address.

In Malaysia, while Bitcoin mining itself isn’t illegal, tampering with electricity supply lines is a crime punishable under Section 37 of the Electricity Supply Act, which can result in fines up to 100, 000 Malaysian ringgit ($ 23, 700 ) and a prison sentence of up to five years.

Authorities have since opened an investigation, seeking information that would lead to an arrest.

Miners who use excessive amounts of electricity have repeatedly targeted the nation’s electricity infrastructure. Bandar Puncak Alam is not a singular case in the entire area. &nbsp,

Just last month, Thai police uncovered a similar mining operation in Chonburi that had stolen an estimated$ 3 million in electricity, involving over 1, 000 mining machines.

Malaysia has experienced roughly $750 million in losses from similar activities between 2018 and 2023, according to some estimates.

Four years ago, authorities confiscated over 1, 000 Bitcoin mining rigs in Miri, Sarawak, after miners allegedly siphoned$ 2 million worth of electricity from the local energy provider.

1, 069 mining rigs were used to crush the equipment by Malaysian authorities in Miri in a joint operation with Sarawak Energy.

As the price of Bitcoin soared in 2024, now trading at a price of $97,000, as per CoinGecko data, the environmental cost of Bitcoin mining has also surged. 

Bitcoin’s mining process consumes vast amounts of energy, equivalent to the annual electricity consumption of Poland, estimated at 155 TWh to 172 TWh per year, according to researchers.