Illegal cryptocurrency mining operations in Malaysia have stolen electricity worth astounding $723 million between 2018 and 2023. Their profits from Bitcoin and Ethereum mining for that period remains unknown, yet it would be fare to assume the sum is also epic.
This revelation comes from Akmal Nasrullah Mohd Nasir, Deputy Minister of Energy Transition and Water Transformation.
Nasir disclosed this information during an event where seized items, including Bitcoin mining machines and electrical equipment valued at $467,000, were destroyed. He stressed that these illicit operations harm both the state-controlled power operator and local communities.
Energy companies can detect abnormal usage patterns. Thieves typically avoid registration and bypass meters or divert power from existing lines.
"The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises," Nasir explained.
However, energy suppliers can identify unusual consumption in an area. This capability allowed Malaysian officials to seize over 2,000 items in October 2022.
While cryptocurrency mining itself is legal in Malaysia, stealing electricity for this purpose is not. The Universiti Teknologi MARA clarified this distinction in December 2022.
Malaysian authorities have been cracking down on illegal miners since at least August 2019. Nasir emphasized that these operations comply with national criminal procedure laws.
Some seized machines have been crushed by steamrollers as part of the disposal process. It's a no-nonsense approach to deterrence, to say the least.
Curbing illegal mining is a priority for the Ministry of Energy Transition and Water Transformation. This effort runs alongside initiatives to boost renewable energy sources in Malaysia.
But legal actions against illegal crypto activities in Malaysia are not limited to that. There is more.
Malaysian authorities have also taken action against unregistered cryptocurrency exchanges. In May 2023, the Securities Commission Malaysia ordered Huobi Global to cease operations due to lack of registration. That makes Malaysia one of the countries with the most strict approach to illegal crypto activities.
Currently, only six cryptocurrency trading platforms are registered in Malaysia: HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International. No Binance, no Coinbase, if you've noticed.
In a related development, Malaysian authorities busted a forex investment fraud and cryptocurrency syndicate in May. The operation had been laundering funds from overseas scams.
Eight local men and two women were arrested in raids across the Klang Valley. Assets seized included 129 vehicles with exclusive registration plates worth $3.8 million, 75 branded watches valued at $2.1 million, and 18 luxury vehicles worth $1.7 million.