Over the past few years, power theft for cryptocurrency mining has become an increasingly serious issue in the Malaysian state of Sarawak. Three hidden cryptocurrency mining operations that were found in shophouses and residential residences in the Miri region recently are suspected of stealing electricity.
The utility business, which uses stolen electricity to run Bitcoin mining operations, is anticipated to lose 30,000 Ringgit ($6,276) per month, according to representatives from the Sarawak police and Sarawak Energy plant.
Over seventy cryptocurrency mining servers and other equipment discovered on site have been taken by the investigating team, according to a recent announcement.
They also found that several cryptocurrency miners illegally obtained power by physically tapping electricity wires in order to circumvent meters.
The report also stated that the investigations are currently ongoing in accordance with Section 33(5) of the nation's Electricity Ordinance. The offenders risk a maximum fine of 200,000 Ringgit ($42,000) or up to five years in jail if found guilty.
Due to Sarawak's extremely affordable electricity rates, cryptocurrency companies have chosen to establish mining facilities there. However, according to reports, these procedures frequently entail dangerous and non-standard wiring, which poses major risks such as fires, short circuits, damage to appliances, and even fatalities.
"Sarawak Energy is steadfast in its commitment to working in tandem with law enforcement and the Ministry of Utility and Telecommunication (MUT) to prevent power theft, especially in instances where the mining of cryptocurrencies has caused the company to suffer large financial losses.”
The Miri Region of Sarawak Contains More Than Half of All Crypto-Related Power Thefts.
The Miri area accounted for more than half of the crypto-related power theft instances in Sarawak, according to the investigative team.
"Approximately 60% (156 cases) of the 260 cases found in Sarawak since 2018 were found in Miri," the report stated.
Two illicit cryptocurrency mining operations were discovered by Sarawak Energy in September of last year, resulting in frequent power outages in a few locations. Sarawak Energy has suffered a monthly loss of almost 4 million Ringgit ($837K) as a result of these power thefts.
April 2024, Cryptoniteuae