Key Insights
- Malaysian authorities arrested seven individuals (three locals and four foreigners) for allegedly stealing electricity to power bitcoin mining operations.
- Police seized 52 bitcoin mining rigs and other electronic devices valued at approximately 250,000 Malaysian Ringgit ($57,000).
KUALA LUMPUR, Aug 18 (Reuters) – Malaysian authorities have apprehended seven individuals suspected of stealing electricity to power illegal bitcoin mining operations, in a move that underscores the country’s ongoing efforts to combat crypto-related power theft.
Sepang District Police Chief ACP Wan Kamarul Azran Wan Yusof announced that three Malaysian citizens and four foreign nationals were detained in separate raids last week. The suspects, who have no prior criminal records, were targeted as part of a broader initiative to “detect illegal bitcoin mining activities that involve electricity theft,” Wan Yusof stated.
During the operations, law enforcement seized 52 bitcoin mining rigs and additional electronic equipment. The total value of the confiscated items is estimated at 250,000 Malaysian Ringgit (RM), equivalent to approximately $57,000.
This crackdown comes in the wake of alarming revelations by Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir. Last month, Nasir disclosed that crypto miners in Malaysia had illicitly consumed electricity worth at least RM3.4 billion ($777 million) between 2018 and 2023.
The surge in crypto mining activities in Malaysia and other Southeast Asian nations, including Indonesia, Laos, and Thailand, can be attributed to China’s 2021 ban on all crypto mining operations. These countries have become attractive alternatives for miners due to their competitive electricity rates, skilled workforce, and existing infrastructure.
As cryptocurrency mining continues to proliferate across Southeast Asia, authorities are grappling with the challenge of balancing the potential economic benefits with the need to prevent illegal activities and manage power consumption.
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