KUALA LUMPUR, Malaysia, Sunday, August 25, 2024 – Malaysian authorities have arrested seven people, including three Malaysians and four foreigners, in connection with suspected bitcoin mining operations that involved stealing electricity.
The arrests were made last week following investigations into illegal mining activities in the Sepang District.
Malaysian Police said they had confiscated 52 mining rigs and other electronic devices valued at approximately RM 250,000 ($57,000).
The detainees, who had no prior criminal records, were suspected of using stolen electricity to power their bitcoin mining operations.
Electricity theft in Malaysia is punishable by fines up to RM100,000 and/or a maximum prison term of five years.
The intense competition in crypto mining often drives individuals to seek cheaper electricity sources.
In recent months, Malaysia has seen an increase in cases of crypto miners illegally tapping into the power grid.
Sarawak Energy, a state-owned electric provider, accused miners of stealing RM 30,000 ($6,500) worth of electricity each month.
A recent report highlighted the significant impact of crypto mining on electricity theft in Malaysia, estimating losses of approximately RM3.4 billion ($723 million) between 2018 and 2023.
Similar challenges have been faced in neighboring Thailand, where authorities have also discovered illegal bitcoin mining operations that were stealing electricity.
To combat this issue, Thai authorities have encouraged citizens to report suspected cases of electricity theft.
