Malaysian authorities are cracking down on Bitcoin mining rigs, here’s why (report)

Police in Malaysia are destroying Bitcoin mining rigs as part of a wider crackdown on crypto miners who steal electricity for their operations.

A local media report, Malaysia Gazette, revealed that the Perak district police headquarters crushed 985 mining rigs worth RM1.98 million ($452,500) earlier this week. A video on the platform’s X account showed the machines being crushed with a motor with local officials present.

Malaysian authorities destroy mining rigs

The Perak Tengah district police chief said the department had received a court order to destroy the mining equipment. Authorities seized the rigs during enforcement operations and raids against Bitcoin miners from 2022 to April.

“Bitcoin mining articles of the 24 registered cases involve the year 2022 up to nine cases, 2023 (two cases) and 2024 (one case). This removal is carried out according to the scheduled removal method, which is “E-waste and solid waste under the First Schedule, Environmental Quality (Scheduled Waste) Regulations 2005 in effect,” said Superintendent Hafezul Helmi Hamzah.

During these raids on Bitcoin mining facilities, police also arrested people suspected of running operations that stole electricity in the Asian country.

Detection of unusual power consumption

One of the operations carried out last week saw police in the Sepang district arrest seven people suspected of being involved in mining operations around the Bandar Baru Salak Tinggi and Taman Putra Perdana regions. According to a report by CryptoPotato, those arrested included three local men and four foreigners aged between 30 and 74.

The seized assets include 52 Bitcoin mining rigs, three laptops, seven mobile phones and two vehicles estimated to be worth around RM250,000 ($57,000). Authorities have launched investigations into the mining operations and some arrested suspects have been charged in court. It is worth mentioning that the arrested people have no criminal record and are only suspected of engaging in illegal Bitcoin mining activities involving electricity theft.

Malaysian authorities have long cracked down on local Bitcoin miners who steal power for their crypto operations. Malaysia lost up to RM3.4 billion ($722 million) in power to crypto miners between 2018 and 2023. The government’s energy minister said miners were able to steal power for so long because of the absence of meters in their facilities; however, energy supply companies have deployed different methods to detect unusual consumption.

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!