Cryptocurrency mining has taken a bold turn in Malaysia, as a group of determined miners embarks on a relentless quest for energy so remarkably inexpensive that it verges on being free.
Caught in the crosshairs of this unorthodox endeavor is Sarawak Energy, a prominent state-owned electric company in Malaysia, which is now setting its sights on exposing these unscrupulous people. Cryptocurrency miners charged To brazenly steal electricity to fuel mining rigs.
While the exact cryptocurrency being mined remains undisclosed, it is worth noting that Bitcoin (BTC) continues to lead the way among mining operations, especially after Ethereum made the big switch to a Proof-of-Stake consensus mechanism last year.
As the battle between crypto miners and electricity companies escalates, the drive for cheap energy becomes a contentious focal point, with the stakes higher than ever.
Cryptocurrency miners caught in Malaysia stealing electricity
Sarawak Energy, in collaboration with the local police force, has successfully located and arrested two cryptocurrency miners who were allegedly involved in the theft of approximately RM30,000, equivalent to $6,500 in electricity on a monthly basis.
Moreover, the utility company revealed that these illegal mining hardware are closely related and believed to be under the control of a single individual or entity.
local news outlet MalayMail Shedding light on the modus operandi used by these illegal converters of electricity, explaining their tactics aimed at avoiding detection.
The perpetrators resorted to fraudulent manipulation of electrical appliances, including tampering with electricity meters, creating false meter covers, and surreptitiously tapping underground power lines. These deceptive measures have been used to disguise their unauthorized consumption of electricity for cryptocurrency mining purposes.
Bitcoin trying to maintain hold in the $30K territory. Chart: TradingView.com
During the joint operation, a total of 120 mining machines were confiscated, along with direct wiretapping cables and several other electronic devices, to be used as evidence for further investigation.
Electricity theft in Malaysia is a crime punishable by a fine and possibly imprisonment under Section 33 (5) of the Electricity Act. Those found guilty could face a maximum fine of RM100,000 and/or five years in prison.
Controversy over cryptocurrency mining intensified
While the recent crackdown on electricity theft by crypto miners in Malaysia sheds light on the illicit activities surrounding the industry, it also raises broader concerns about the environmental impact and energy consumption associated with cryptocurrency mining operations.
The controversy stresses the need for a careful balance between technological developments, economic interests, and sustainability goals.
Cryptocurrencies like Bitcoin rely on energy-intensive processes, such as proof-of-work consensus algorithms, to secure their networks and validate transactions. This computational complexity requires great computing power, and thus huge amounts of electricity.
As a result, mining operations have faced increased scrutiny for their large carbon footprint and pressure on energy resources.
Featured image from working day NG
