TLDR
- An explosion in Bandar Puncak Alam, Malaysia, unveiled a covert Bitcoin mining venture using nine rigs powered by illegally tapped electricity.
- Fire ignited at 11:41 AM and was subdued by 4:45 PM, unveiling altered wiring and unlawful electricity links.
- Malaysian officials have faced similar cases, including a $3 million electricity theft in Thailand recently involving over a thousand mining apparatuses.
- A past enforcement action in Miri, Sarawak resulted in the obliteration of 1,069 mining machines after an electricity theft valued at $2 million.
Malaysian authorities unveiled a covert Bitcoin mining operation. following a blast and subsequent fire in a vacant Bandar Puncak Alam residence on Tuesday, February 13, 2025. .
This event adds to the expanding roster of unauthorized cryptocurrency mining ventures in Southeast Asia.
The revelation came about after a local alerted authorities to an explosion and smoke originating from a home on Lorong Cekara Purnama at 11:41 AM, prompting 14 volunteer firefighters from Saujana Utama and Bestari Jaya to the scene.
Sungai Buloh district police chief Supt Mohd Hafiz Muhammad Nor disclosed that responders had to force entry into the vacant house, where they pinpointed the origin of the fire to a room with compromised electrical circuits.
Once the fire was doused at 4:45 PM, a combined investigative group from the police and Tenaga Nasional Berhad (TNB) explored the site, unearthing nine Bitcoin mining devices, nine ventilation fans, and a D-link router, all wired illegally.
The enterprise breached Section 37 of Malaysia’s Electricity Supply Act, forbidding tampering with electrical lines. Violators face penalties of up to 100,000 Malaysian ringgit ($23,700) and possible five-year incarceration.
Investigation proceedings have commenced under Section 427 of the Penal Code and Section 37(1) of the Electricity Supply Act 1990. Law enforcement is on the lookout for information that could result in arrests, with Assistant Investigating Officer Mohamad Nurizwan Hafiz Abd Halim leading the charge.
The event is part of a trend of similar occurrences across the region. In Thailand recently, officials unveiled a mining setup in Chonburi with over 1,000 machines siphoning off around $3 million in power.
Other Illegal Mining Operations
Malaysia's track record with clandestine crypto mining includes a significant case in Miri, Sarawak, where operators allegedly pilfered $2 million in electricity, prompting the confiscation of more than a thousand machines.
The confiscated gear in Miri was pulverized by authorities with a steamroller. In a strong move against illegal mining, 1,069 rigs were destroyed in a collaborative effort with Sarawak Energy.
Ibu Pejabat Polis Daerah (IPD) Perak tengah disposed of 985 Bitcoin mining tools, valued at around RM1.98, on Monday. #IPDPerak #Lupus #bitcoin
Video: Amirrul Rabbani Rashid pic.twitter.com/kEgdqTopCH
— Malaysia Gazette (@MalaysiaGazette) August 19, 2024
According to estimates, Malaysia lost approximately $750 million to unauthorized mining from 2018 to 2023, often targeting the national power grid and challenging law enforcement.
The surge in unlawful mining aligns with Bitcoin’s mounting worth, reaching $97,000, thus boosting mining profitability despite hefty energy costs.
In response to the Bandar Puncak Alam episode, officials urged individuals with pertinent information to approach their nearest police station. The probe is ongoing as part of Malaysia’s wider initiative against unauthorized crypto mining.
