Malaysian police discovered an illegal crypto mining farm after an explosion in a residential house. The incident occurred in Bandar Puncak Alam, where miners were using stolen electricity to mine Bitcoin.
On Tuesday, witnesses reported smoke and a flash of flames in a house on Lorong Cekara Purnama Street. Firefighters arrived at the scene and extinguished the blaze. After the fire was put out, police found nine mining rigs, industrial fans, and a D-Link router connected to an illegal power source inside the house.
The Scale of Cryptocurrency Power Theft
This case highlights the growing problem of illegal electricity consumption for crypto mining in Malaysia. While cryptocurrency mining is not banned in the country, bypassing power meters and illegally connecting to the grid is a crime. Under Section 37 of the Electricity Supply Act, violators face fines of up to 100,000 Malaysian ringgit ($22,400) and up to five years in prison.
In January, Thai police discovered an illegal mining farm with 1,000 rigs in Chonburi, which had stolen $3 million worth of electricity. From 2018 to 2023, Malaysia reportedly lost around $750 million due to similar schemes.
Bitcoin Rises, Energy Consumption Grows
The rise in Bitcoin prices in 2024 has made mining attractive again despite its high energy consumption. According to researchers, Bitcoin’s annual electricity consumption now matches that of Poland, ranging between 155 TWh and 172 TWh.
Four years ago, Malaysian authorities took strict measures against illegal miners. In 2021, law enforcement in the city of Miri destroyed 1,069 confiscated Bitcoin mining rigs by crushing them with a steamroller. However, even such drastic actions have failed to stop the underground industry.
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