Malaysian Compulsory Parties Successfully Confiscate Illegal Crypto Mining Facilities In Serawak

Cryptocurrency mining machine. (Photo; Doc. Inside Bitcoin)

JAKARTA - Illegal cryptocurrency mining operations were revealed at the Marina Square shophouse, Miri, Sarawak, Malaysia. The investigation carried out by the Sarawak police and the state utility company, Sarawak Energy, managed to dismantle a crypto mining facility suspected of stealing electrical energy.

Valuable information from the public has helped authorities uncover the practice of theft that took place at the venue. In a series of confiscation actions, around 34 special integrated circuit (ASIC) miners and related devices were arrested by police and teams from Sarawak Energy.

In addition, all the equipment used for mining operations, including direct wiretapping cables and servers, has been confiscated for further investigation purposes.

"All the equipment used for mining operations, including direct wiretapping cables and servers, were confiscated. Police reports have been filed and investigations are currently underway," Sarawak Energy said.

Authorities claim that electricity rates in Malaysia are relatively low compared to other global regions. However, this has also led to a spike in incidents of electrical theft over the past few years. As a result of this particular case alone, the power plant suffered a loss of RM6,000 per month (around Rp. 19.8 million).

Sarawak Energy emphasized that the theft of electricity was a serious violation based on Article 33 (5) of the Electricity Law, with a fine of up to RM100,000 and/or five years in prison for those found guilty. Furthermore, three additional electricity theft schemes related to crypto mines in Senadin have also been prosecuted by the authorities.

In the previous case, as many as 137 ASIC devices were confiscated from sites suspected of being involved in electric theft. February 2021 became a record when Malaysian authorities arrested seven people for stealing electricity worth US $ 2.15 million (IDR 32 billion) to mine Bitcoin. Meanwhile, in July 2021, Bitcoin mining devices worth more than US $ 1.2 million (IDR 18 billion) have been confiscated and destroyed because they operate illegally.

What's more, in the same month, officials in Miri City, Sarawak, also seized 1,069 rigs from miners suspected of stealing electricity for their operations. Sarawak Energy has released reports showing that they have equipment and a meter inspection team to detect such theft practices, including direct wiretapping of the compromised underground and meter.

As a further precautionary measure, Sarawak Energy encourages the public to continue reporting suspicious activities to their customer service centers. Through cooperation and public participation, it is hoped that the arrest of more illegal crypto mining operations can be carried out to maintain the integrity of the electricity system and reduce losses caused by electricity theft.