Simply put
- In November, Malaysia established a special committee to combat electricity theft linked to mining operations.
- Over the last five years, Japan has uncovered around 14,000 illegal activities related to electricity theft.
- This week, Thailand shut down a major mining operation associated with a fraudulent network.
Malaysian authorities are deploying drones and handheld sensors to address Bitcoin mining operations suspected of stealing electricity from the grid. Recent reports indicate that this crackdown is underway.
Last month marked the launch of a special committee involving representatives from the Ministry of Finance, Bank Negara Malaysia, and TNB aimed specifically at illegal activities.
This initiative follows earlier efforts, including a significant action in May that resulted in the closure of approximately 2,400 mining operations and the confiscation of 45 rigs in northeastern Malaysia. An explosion in February at a house in Bandar Puncak Alam also exposed illegal mining activities.
In total, authorities have identified 14,000 illegal mining operations over the past five years, leading to an estimated loss of $1.1 billion due to electricity theft.
Reports suggest that various companies have been establishing mining rigs in diverse locations, from ex-logging yards in Sarawak to abandoned shopping malls near the Straits of Malacca.
Bitcoin mining is legitimate if proper electricity sourcing and tax payments are adhered to; however, some operators bypass these regulations.
Wolfie Zhao, research head at TheMinerMag, commented that power theft has been a persistent issue in Malaysia, not limited to Bitcoin mining. He noted, “Mining can be profitable, and incidents like these have persisted for years.” Local news has chronicled related events since at least 2019, including a notorious incident where police crushed thousands of confiscated Bitcoin miners.
Prevention of illegal mining remains a challenge. Zhao pointed out that many operators cleverly manipulate meters, which makes detection difficult for utility companies, who usually only catch discrepancies over time.
Other Southeast Asian nations are also cracking down. Just this week, Thailand closed a Bitcoin mining operation valued at $8.6 million connected to a “Chinese fraud network,” which involved 3,462 rigs across six sites. In September, two arrests were made in Hong Kong for allegedly diverting electricity from a care home to power mining equipment.
