Fire Leads Authorities to Unlicensed Mining Setup
A blast in Bandar Puncak Alam, Malaysia, has exposed an illegal Bitcoin mining operation, highlighting the country’s ongoing battle with crypto-related power theft.
The incident occurred on Tuesday at a house on Lorong Cekara Purnama, where smoke and flames prompted a local resident to call for help at 11:41 am. Firefighters extinguished the blaze by 4:45 pm, uncovering a sophisticated mining setup that included:
- 9 Bitcoin mining rigs
- Blower fans
- D-Link router
- Unauthorized power connections
Power Theft and Legal Consequences
While Bitcoin mining is legal in Malaysia, tampering with electricity supply lines is a criminal offense under Section 37 of the Electricity Supply Act. Violators face:
- Fines up to 100,000 Malaysian ringgit ($23,700)
- Prison sentences of up to five years
Authorities have launched an investigation to identify those responsible.
A Growing Pattern of Crypto-Related Power Theft
This incident adds to Malaysia’s rising problem with power theft from crypto miners, which has caused an estimated $750 million in losses between 2018 and 2023.
Similar cases include:
- Miri, Sarawak (2021): Authorities seized and destroyed 1,069 mining rigs using a steamroller, after miners stole $2 million worth of electricity from Sarawak Energy.
Chonburi, Thailand (2024): Police uncovered a mining operation that stole $3 million in electricity, involving over 1,000 mining machines.
Rising Bitcoin Prices, Rising Energy Costs
The discovery comes as Bitcoin prices surge to $97,000, according to CoinGecko. The sharp price increase has intensified mining activity, driving up environmental costs.
Bitcoin mining energy consumption:
- Estimated at 155 TWh to 172 TWh annually
- Comparable to Poland’s total yearly electricity usage
