Seven Arrested in Malaysia for Bitcoin Mining Electricity Theft; 52 devices confiscated

Malaysian officials have arrested seven people for alleged bitcoin mining operations involving electricity theft.

Local media, Bernama, reported that those arrested include three Malaysians and four foreigners, who were detained separately last week.

Electricity theft in Malaysia

In an official statement, Sepang District Police Chief ACP Wan Kamarul Azran Wan Yusof mentioned that the arrested individuals had no criminal record. Local police also confiscated 52 mining rigs and other electronic devices, worth RM250,000 worth approximately US$57,000.

The intense competition in crypto mining often boils down to obtaining cheap electricity. In Malaysia, some miners aggressively seek to find free power, even when electricity theft, as defined in Section 33(5) of the Electricity Ordinance, carries fines of up to RM100,000 and/or a maximum prison sentence of five years.

Last month, Sarawak Energy, a state-owned electricity provider in Malaysia, accused cryptocurrency miners of repeatedly stealing electricity for its mining rigs. Sarawak teamed up with local law enforcement for a joint operation and found that two mining operations were suspected of stealing RM30,000, valued at $6,500, of electricity each month.

They also suggested that both operations were connected and controlled by the same entity. As part of the investigation, 120 machines and various electronic devices have been confiscated.

Although cryptographic and mining activities remain legal in Malaysia, a recent report highlighted that these operations were the main cause of major electricity theft in the country between 2018 and 2023, resulting in losses of approximately 3,400 million RM, worth almost US$723 million, due to unauthorized use of electricity.

A similar crisis in Thailand

Across the border in Thailand, authorities face a similar challenge with electricity theft related to crypto mining. In earlier investigations, the MEA found several commercial buildings that appeared abandoned but showed signs of bitcoin mining, such as constant fans, sealed entrances and 24-hour air conditioning.

To encourage public reporting, authorities have pledged to keep all information confidential and have offered several ways for citizens to report suspected illegal use of electricity for Bitcoin mining.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!