Catenaa, Thursday, February 20 – A powerful blast in Bandar Puncak Alam city has exposed an illegal Bitcoin mining operation, adding to Malaysia’s growing issues with cryptocurrency-related power theft.
The explosion, which occurred last Tuesday at around 11:41 a.m., led to a fire that was extinguished by 4:45 p.m., revealing a sophisticated setup of nine Bitcoin mining rigs, blower fans, and a router—all powered by unauthorized electricity.
The discovery is seen as the rising challenge of electricity theft in Malaysia’s cryptocurrency sector. While Bitcoin mining is legal, tampering with the country’s power infrastructure is not.
Under Malaysia’s Electricity Supply Act, such activities are punishable by fines of up to 100,000 Malaysian ringgit ($23,700) and imprisonment for up to five years.
The Malaysian government has faced increasing difficulty in addressing crypto miners’ illegal use of electricity, who often bypass legal energy sources to fuel their operations. The incident in Bandar Puncak Alam is not isolated; just last month, authorities in Thailand uncovered a similar illegal mining operation that had stolen millions of dollars worth of electricity.
Estimates suggest Malaysia has lost approximately $750 million to power theft from cryptocurrency mining operations between 2018 and 2023. This problem has spurred efforts from local authorities to crack down on these illegal setups, including large-scale operations to destroy confiscated mining rigs.
As Bitcoin’s market value continues to climb, so too does the environmental impact of mining, which consumes vast amounts of energy and leads to concerns about sustainability.
