Bitcoin Mining Explosion in Malaysia Exposes Power Theft Activities, Authorities Step In
In a recent incident in Malaysia, illegal Bitcoin mining operations exploded in an uninhabited house in Ponkak Alam, Selangor district of Kuala Lumpur. The explosion was reportedly caused by excessive electricity use of Bitcoin mining rigs, causing alarm from local authorities.
Seizure of mining equipment and investigations are underway
After the explosion, local authorities discovered a large amount of mining equipment in the house. Police seized nine bitcoin mining rigs, nine blower fans and a D-Link router from the site. Firefighters and police officers had to break into uninhabited houses to put out the fire that occurred in the room with modified circuits, which seemed to have been short-circuited.
According to the police It is illegal to use the power used by the mining business to power mining operations without proper authorization. This form of energy theft has become an increasingly serious problem in Malaysia, where illegal cryptocurrency mining has become widespread.
Focus on illegal crypto mining in Malaysia is increasing
The event is part of a larger trend in increasing illegal cryptocurrency mining activities in Malaysia. The country has suffered significant financial losses in recent years due to these activities, with Ringgit losing $3.4 billion (approximately $763 million) since 2018. Malaysian authorities are concerned about the negative effects of illegal crypto mining, including pressure from IT Place on the country’s power supply.
Government efforts to combat theft
Malaysian authorities have realized the need to fight this illegal mining phenomenon. Energy companies have been working closely with the government to detect abnormal power usage through advanced monitoring technology. However, the problem remains, as many illegal miners use complex methods to bypass detection.
Although Bitcoin mining itself is not illegal in Malaysia, it is illegal to use electricity for mining purposes without authorization. The Malaysian government has been actively addressing the issue and plans to take new measures to prevent further illegal activities.