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Malaysia destroys Bitcoin mining rigs tied to energy theft

GrafaGrafa2024/08/24 09:05
By:Mahathir Bayena

Malaysian authorities have intensified their crackdown on illegal Bitcoin (CRYPTO:BTC) mining operations by destroying nearly 1,000 mining rigs that were confiscated for stealing electricity. 

The Perak District Police recently crushed 985 Bitcoin mining rigs, valued at approximately RM1.98 million ($452,500), as part of a broader effort to combat energy theft by crypto miners.

The destruction of the mining equipment, ordered by the court, took place earlier this week in the Perak Tengah District. 

A video posted by local media, Malaysia Gazette, showed the machines being crushed by a steamroller in the presence of local officials. 

The equipment was seized during a series of enforcement operations and raids against Bitcoin miners from 2022 to April 2024.

According to Superintendent Hafezul Helmi Hamzah, the police have been actively targeting illegal Bitcoin mining activities due to their significant impact on Malaysia's energy resources. 

The confiscation of mining rigs is part of a larger strategy to address the issue of electricity theft, which has cost the country as much as RM3.4 billion ($722 million) between 2018 and 2023.

In addition to destroying the mining rigs, the police have arrested several individuals suspected of being involved in these illegal operations. 

Last week, the Sepang District Police apprehended seven individuals, including both locals and foreign nationals, suspected of running Bitcoin mining operations in the Bandar Baru Salak Tinggi and Taman Putra Perdana regions. 

The confiscated assets from this operation included 52 Bitcoin mining rigs, laptops, mobile phones, and vehicles valued at around RM250,000 ($57,000).

Authorities have charged some of the suspects in court, and investigations are ongoing. 

The Malaysian government has expressed its determination to curtail illegal Bitcoin mining, particularly due to the substantial energy losses incurred by the nation. 

The country's energy minister has noted that the lack of meters on premises used for mining operations has allowed miners to evade detection, but new measures are being implemented to monitor and detect unusual energy consumption patterns.

As Malaysia continues its crackdown on illegal crypto mining, the destruction of these mining rigs serves as a stark warning to those involved in such activities, underscoring the government's commitment to protecting its energy resources.

At the time of reporting, the Bitcoin (BTC) price was $64,270.48.

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