Malaysia crushes crypto equipment with steamroller, accused miners of $2-million electricity theft

Malaysian authorities in Miri, Sarawak in a publicity stunt destroyed 1,069 mining racks used by crypto miners using a big steamroller, a Youtube video posted on July 15 shows (see below).

The computer equipment was seized from miners in a joint operation between Miri police and state electricity firm Sarawak Energy in six raids between February and April this year, local media reported.

It has (had) an estimated value of 5.3 million ringgit ($1.26 million).

The crushing did not happen because crypto mining is viewed as an illegal activity per se in Malaysia, because there is no law against it. Although the central bank, Bank Negara Malaysia, has declared that cryptocurrencies were not legal tender in the country, mining for Bitcoin is not prohibited and falls into a gray area. There has so far not been any absolute answer from authorities about the legality of mining for cryptocurrencies.

Electricity theft for crypto mining has become “rampant,” police chief says

In this case, the problem is related to accusations that the miners allegedly have stolen electricity for their operations from the state grid.

Sarawak Energy, the electric utility company of the Malaysian state, is accusing the mining operators of stealing electricity for their activities, saying that they allegedly used power worth 8.4 million ringgit (nearly $2 million) from the company without paying.

Electricity theft is a persistent issue in numerous regions worldwide where cryptocoins are being mined, as some operators use illegal means to secure the electricity necessary for the energy-intensive mining process, particularly in countries with a laxer law enforcement.

In Malaysia, the electricity theft for crypto mining activities has caused frequent power outages in the past, and in 2021, three houses burnt down due to illegal and unsecured electricity supply connections, Miri’s police chief Hakemal Hawari told local media.



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Malaysian authorities in Miri, Sarawak in a publicity stunt destroyed 1,069 mining racks used by crypto miners using a big steamroller, a Youtube video posted on July 15 shows (see below). The computer equipment was seized from miners in a joint operation between Miri police and state electricity firm Sarawak Energy in six raids between February and April this year, local media reported. It has (had) an estimated value of 5.3 million ringgit ($1.26 million). The crushing did not happen because crypto mining is viewed as an illegal activity per se in Malaysia, because there is no law against it....

Malaysian authorities in Miri, Sarawak in a publicity stunt destroyed 1,069 mining racks used by crypto miners using a big steamroller, a Youtube video posted on July 15 shows (see below).

The computer equipment was seized from miners in a joint operation between Miri police and state electricity firm Sarawak Energy in six raids between February and April this year, local media reported.

It has (had) an estimated value of 5.3 million ringgit ($1.26 million).

The crushing did not happen because crypto mining is viewed as an illegal activity per se in Malaysia, because there is no law against it. Although the central bank, Bank Negara Malaysia, has declared that cryptocurrencies were not legal tender in the country, mining for Bitcoin is not prohibited and falls into a gray area. There has so far not been any absolute answer from authorities about the legality of mining for cryptocurrencies.

Electricity theft for crypto mining has become “rampant,” police chief says

In this case, the problem is related to accusations that the miners allegedly have stolen electricity for their operations from the state grid.

Sarawak Energy, the electric utility company of the Malaysian state, is accusing the mining operators of stealing electricity for their activities, saying that they allegedly used power worth 8.4 million ringgit (nearly $2 million) from the company without paying.

Electricity theft is a persistent issue in numerous regions worldwide where cryptocoins are being mined, as some operators use illegal means to secure the electricity necessary for the energy-intensive mining process, particularly in countries with a laxer law enforcement.

In Malaysia, the electricity theft for crypto mining activities has caused frequent power outages in the past, and in 2021, three houses burnt down due to illegal and unsecured electricity supply connections, Miri’s police chief Hakemal Hawari told local media.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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