The Malaysian state of Sarawak has faced issues with unauthorized cryptocurrency mining activities.
Today, Sarawak Energy, the state’s official electricity provider, disclosed the discovery of two unauthorized crypto mining locations that have been responsible for repeated power outages in certain parts of the state.
The company is currently probing the individuals behind these mining activities situated in two domestic zones. A report has been lodged with the police, indicating that these illicit mining operations overloaded Sarawak Energy’s electrical lines.
After numerous local residents reported recent power disruptions, an investigation was promptly launched. The findings showed that the power-intensive operations placed a significant burden on the electricity lines.
“Upon detailed examination, it was discovered that unauthorized connections were made from two properties, housing 74 cryptocurrency mining devices.”
In the wake of the investigation, Sarawak Energy confiscated all the unauthorized connection cables and the associated cryptocurrency mining equipment and servers.
Risk and Loss
The energy company from Malaysia has issued stern warnings to those running unauthorized mining operations about potential legal consequences for non-adherence to regulations. Sarawak Energy reported monthly losses of over RM16,000 (approximately $3,400) due to these rogue activities.
“Sarawak Energy has been incurring losses exceeding RM16,000 monthly from these two locations because of undetected consumption.”
Moreover, the firm emphasized that such activities amount to electricity theft and bring about “grave dangers” which include potential short circuits, fires, damage to appliances, and even fatalities.
“To address this escalating concern, Sarawak Energy is collaborating with the Ministry of Utility and Telecommunication Sarawak, local police, and the Malaysian Anti-Corruption Commission (MACC) to refine their approach in identifying emerging methods of electricity theft,” the report further stated.
The state has witnessed multiple such incidents. In June, an individual involved in cryptocurrency mining was apprehended for illicitly drawing electricity in an establishment situated in the town of Miri.
Sarawak Energy is also cautioning individuals and businesses against unauthorized electricity usage, emphasizing the potential safety risks it poses not only to them but also to those in their vicinity.
