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- Following their seizure for operating illegally, Malaysian authorities destroyed Bitcoin mining system devices valued at more than $1.2 million.
- According to officials, three residences in the region were destroyed this year due to illegal Bitcoin mining, and Sarawak Energy lost an estimated $2 million as a result of the activities.
- According to Miri police chief Hakemal Kawari, the crypto mining people illegally connected to the electrical lines of Sarawak Energy Berhad, an electricity utility company that serves the Sarawak state.
Authorities in Malaysia destroyed mining machines worth more than $1.2 million after seizing them for operating illegally. Police in the city of Miri on the island of Borneo and the Sarawak Energy business organized for a steamroller to run over 1,069 Bitcoin (BTC) miners, according to a video uploaded today by a local news source DayakDaily. Between February and April, the rigs were allegedly taken from Malaysian citizens attempting to mine the cryptocurrency using stolen energy illegally.
Loss for the bitcoin mining industry
According to an article published on Friday in Malaysian daily The Star, the mining machines, valued at $1.26 million, were disposed of today at the Miri district police headquarters. Three homes in the region were damaged this year as a result of illicit mining, according to authorities, and the Sarawak Energy business lost an estimated $2 million as a result of the operations.
According to The Star, a Malaysian news site, the detained individuals were reportedly involved in energy theft. The crypto miners unlawfully hooked into the electrical lines of Sarawak Energy Berhad, an electricity utility business that supplies the Sarawak state, according to Miri police head Hakemal Kawari.
As a result, the authorities punished roughly $1,900 (RM 8,000) on the seized persons. Not only that but they will be imprisoned for roughly eight months. Nonetheless, the punishment levied is insufficient to cover the purported cost of the power theft.
For only approximately three months of crypto mining, the stolen electricity accounted for about $2 million in supply as we know that BTC is nothing but similar to gold for the crypto industry.
Unclear steps were taken by the officials
It’s unclear why Malaysian officials decided to destroy them rather than try to salvage some of the pieces. Officials in Iran, Turkey, and other countries where crypto mining is prohibited or limited have been raiding illicit crypto mining operations for some time, with arrests, fines, and the confiscation of the rigs common outcomes.
However, few, if any, instances of the devices being crushed or destroyed in this manner by a steamroller. In February, Chinese officials allegedly auctioned off more than 2,000 mining rigs confiscated for identical reasons.
Malaysia generated 3.44 percent of Bitcoin’s total monthly hash rate in April, according to the Cambridge Center for Alternative Finance. The country consumes more than 147 terawatt-hours of energy each year.
Malaysian police took charge
To get the PCs, a group of Malaysian police and Sarawak Energy Berhad carried out six searches with high efficiency. Meanwhile, the raiding team discovered thousands of PCs for crypto mining near the Sarawak region’s airport in Malaysia.
All of the confiscated machinery were subsequently disposed of and crushed by a steam roller into little pieces. As the construction equipment moved along the pile of laptops on the pavement, the PCs were crushed as a Coke can. Cases like these, in which illicit crypto workers of the mines are detained, are not uncommon in Asian countries.
In reality, the most recent raid is far less in scope than prior ones. On March 26, Melaka police in Malaysia launched an investigation into a guy who reportedly stole $2.2 million in power through illicit crypto mining. Another energy firm, Tenaga Nasional Berhad, is the target of this investigation. It is important to remember that the suspect is still on the loose and is wanted by Malaysian authorities, and might even be among the users.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
