A large explosion in Bandar Puncak Alam has uncovered an illegal Bitcoin mining facility, raising concerns about the increasing electricity theft for cryptocurrency mining in the country.

🔥 Details of the incident

  • The explosion occurred on Tuesday morning, when smoke and flames erupted from a house on Lorong Cekara Purnama, forcing local residents to call emergency services at 11:41 AM.

  • By 4:45 PM, when the fire was extinguished, police discovered 9 Bitcoin mining machines, fans, and a D-link router inside. The entire system was connected to an illegal power source.

⚡ The issue of electricity theft for Bitcoin mining in Malaysia

  • Bitcoin mining is not banned in Malaysia, but tampering with the electricity supply system is illegal under Section 37 of the Electricity Supply Act, with fines up to 100,000 Malaysian ringgit (approximately 23,700 USD) and a maximum prison sentence of 5 years.

  • This incident is just one of many cases of electricity theft for cryptocurrency mining in Malaysia, as miners take advantage of cheap electricity and evade costs by illegal connections.

  • Malaysian authorities are conducting an investigation to track down those responsible for the incident.

🌏 A widespread issue in the region

  • This situation is not only happening in Malaysia. Last month, Thai police discovered an illegal electricity theft mining facility in Chonburi, with over 1,000 mining machines and estimated damages of up to 3 million USD.

  • In Malaysia, the estimated damage from electricity theft for Bitcoin mining from 2018 to 2023 amounts to 750 million USD.

  • In 2021, officials in Miri, Sarawak, destroyed 1,069 Bitcoin mining machines by crushing them with a steamroller after discovering that miners had stolen electricity worth 2 million USD.

💰 Bitcoin prices are soaring and the environmental consequences

  • Bitcoin prices surged to 97,000 USD in 2024, according to data, making Bitcoin mining more attractive and leading to increased electricity theft.

  • Bitcoin mining consumes an enormous amount of electricity, equivalent to the annual electricity consumption of the entire nation of Poland (estimated between 155 TWh to 172 TWh per year), causing significant environmental impact.

🚨 Conclusion

The explosion in Bandar Puncak Alam not only exposed an illegal Bitcoin mining operation but also highlighted that electricity theft for cryptocurrency mining is becoming a significant issue in Malaysia and Southeast Asia.
The question arises: Can Malaysia control this situation as Bitcoin prices continue to rise and the allure of profits grows?