Malaysia Cracks Down On Illegal Energy Crypto Mining

Key Points:

• Cryptocurrency mining operation uncovered in Sarawak, Malaysia, during a joint raid by Sarawak Energy and police.
• 34 servers were found operating on stolen electricity via direct tapping cables, causing losses of approximately RM6,000 per month.
• Sarawak Energy remains committed to fighting electricity theft and urges public cooperation in reporting such illicit activities.

According to The Borneo Post, a joint raid conducted by Malaysian electric utility company Sarawak Energy and the police uncovered an illicit cryptocurrency mining operation at a shophouse in Marina Square, Miri.

Upon the raid, all equipment used for the illegal mining activities, including the servers and direct tapping cables, were confiscated. Sarawak Energy stated that an official police report has been filed, and a thorough investigation is currently underway to identify those involved in the operation.

Acting on a public tip-off, the authorities discovered 34 cryptocurrency mining servers that were illicitly powered by stolen electricity through direct tapping cables.

The state utility estimated that this unlawful cryptocurrency mining activity had cost them approximately RM6,000 (~ $1325) per month in losses due to the unauthorized use of electricity.

Cryptocurrency mining operations are notorious for their high energy consumption, as the servers must run non-stop and require additional cooling systems to prevent overheating. Unfortunately, some operators resort to improper installations, which not only lead to electricity theft but also pose significant risks, such as electrical system overloads, short circuits, damaged appliances, fires, and even fatalities.

Sarawak Energy stressed that electricity theft is a severe offense, carrying penalties of up to RM100,000 and/or five years imprisonment for those found guilty.

Despite Sarawak’s customers enjoying the lowest average tariffs in Malaysia, power thefts remain a concern. In response, Sarawak Energy reiterates its commitment to combat electricity theft, collaborating closely with agencies like the Ministry of Utility and Telecommunication and the police.

Earlier this year, another tip-off led to the discovery of three power theft cases linked to various cryptocurrency mining operations in Senadin. In those incidents, authorities seized a total of 137 servers, and investigations are ongoing to hold the perpetrators accountable.

Sarawak Energy also issued a warning to the public about false claims made by certain service providers promising reduced electricity usage or unlimited electricity through meter tampering. To address such unlawful activities, the company’s meter inspection teams are well-equipped to detect various electricity theft methods, including tampered meters, counterfeit electricity meter covers, and underground direct tapping.

Additionally, landlords were advised to exercise caution when renting out their properties and ensure that electricity accounts are transferred to tenants, thus preventing any potential implication in power theft activities.

Malaysia is a country that is quite open to the blockchain industry background. Last year, Malaysia’s national blockchain infrastructure was ready for all levels of government and business sectors.

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