Malaysian Authorities Seized $13M Worth Crypto Mining Equipment in 2021: Report

Crypto

Right after China slapped a ban on Bitcoin (BTC) mining, the operations have started to spread worldwide and invade not-so-friendly territories. In Malaysia, illegal crypto mining operations are at a record high.

Dramatic rise in Bitcoin mining

Bukit Aman Criminal Investigation Department (CID) chief, Datuk Seri Abd Jalil Hassan, revealed that in 2021 alone, Malaysia opened 570 investigation documents, 528 people arrested and around $13 million worth of equipment. miners seized.

According to the report by Malay Mail, only 20 papers were opened, 26 individuals were arrested, and about $301K worth of equipment was seized. All in all, from 2020 to 2021, there has been a rise of an astonishing 4,200% increase with respect to confiscated items.

The chief is said to have pointed out that the majority of the suspects were between 18 and 30 years old, who he believes were lured by the promise of high returns. Interestingly, the oldest offender is 61 years old.

Electricity Theft for Crypto Mining Operation

While Malaysian policymakers have not entirely banned cryptocurrency mining, there are strict laws with regard to power use. As of August 2021, stats show that Malaysia accounts for around 3% of all the global bitcoin miners, placing it in the top ten mining destinations in the world.

But bad actors continue to operate unfazed. The rampant electricity theft in Malaysia has become a major cause for concern. Over a period of 2018 to 2019, a total of 7,209 cases of electricity theft were reported.

According to Hassan, the industrial area surrounding regions of Selangor, Kuala Lumpur, Perak, and Penang is a hot spot for such crimes. These places provide sufficient power for illegal mining. He also added,

“The suspects are finding hidden trading areas so the public won’t hear the noise or feel the heat coming from the mining rigs.”

This isn’t the first time the Malaysian authorities have managed to seize illegal mining rigs. In September last year, CryptoPotato reported that the authorities busted two premises that involved over $600,000 worth of stolen electricity in three years.

A month later, the Malaysian state of Sarawak’s electricity company – Sarawak Energy – discovered power theft from an unoccupied factory in Kuching. The operation that led to the seizure of over 1,200 mining rigs was triggered after a public whistleblower.

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