Since the arrest of seven people, Malaysian law enforcement has made tremendous progress in combating power theft related to crypto mining. As detailed by local media Bernama, the arrests followed an inquiry into the improper usage of electricity for Bitcoin operations.
Seven Arrested in Operation Targeting Illegal Crypto Mining
According to reports, the seven people in custody include three locals and four foreign nationals. All seven are allegedly suspected of stealing electricity to operate their Bitcoin mining operations.
Interestingly, however, the suspects do not have any known criminal records. This was confirmed by ACP Wan Kamarul Azran Wan Yusof, the chief of the Sepang District Police.
The operation is a part of Malaysian authorities’ larger campaign to stop illicit crypto mining activities that include electricity theft.
So far in the ongoing crackdown, authorities have seized 52 bitcoin mining rigs and a good number of other electronic equipment. The equipment that was confiscated is believed to be worth a total of 250,000 Malaysian Ringgits (RM), or roughly $57,000.
It might be worth noting that this recent operation is a testament of Malaysia’s continuous fight against illegal usage of power, particularly those associated with crypto mining.
A Broader Trend
From all indications, there appears to be a wider pattern of growing power theft problems associated with the crypto mining sector. At least, the recent enforcement action brings attention to this pattern.
Moreover, the Deputy Energy Transition and Water Transformation Minister of Malaysia, Akmal Nasrullah Mohd Nasir, disclosed last month that from 2018 to 2023, Bitcoin miners in Malaysia stole nearly RM3.4 billion worth of electricity. That is equivalent to $777 million.
It might also be worth noting that the surge in illegal mining activities coincides with the exit of crypto miners from China. China placed an outright ban on mining activities in 2021, leading miners to seek a safe place to pitch their business tents in nations like Malaysia, Indonesia, Laos, and Thailand.
Despite the fact that most of these places provide more favorable mining regulations, the current enforcement action by Malaysia signals that the country is intent on safeguarding its energy resources.
