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House Fire in Malaysia Reveals Bitcoin Mining Power Theft

Key Takeaways

  • ​A house fire in Malaysia led to the discovery of an illegal Bitcoin mining setup using stolen electricity;
  • Authorities found nine mining rigs running on an unauthorized power source;
  • Illegal Bitcoin mining has cost Malaysia an estimated $750 million in lost electricity revenue between 2018 and 2023.
House Fire in Malaysia Reveals Bitcoin Mining Power Theft

A house fire in Bandar Puncak Alam, Malaysia, has led to the discovery of an unauthorized Bitcoin BTC $95,872.67 mining setup.

According to a local media report on February 11, smoke and flames erupted from a residence on Lorong Cekara Purnama, prompting a local to report the emergency at 11:41 AM. Firefighters managed to put out the blaze by 4:45 PM, but what they found inside raised further concerns.

Officials discovered nine Bitcoin mining rigs, several industrial fans, and a D-link router—all connected to an illegally tapped power source. This discovery adds to Malaysia’s ongoing struggle with electricity theft tied to crypto mining.

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Authorities have launched an investigation to track down those responsible for the illegal operation.

Malaysia has dealt with repeated cases of miners bypassing electricity meters to power their machines. Between 2018 and 2023, such activities have reportedly cost the country around $750 million in lost electricity revenue.

One of the largest crackdowns occurred in 2021 in Miri, Sarawak. Officials seized more than 1,000 Bitcoin mining rigs after discovering that operators had illegally used about $2 million worth of electricity.

While mining Bitcoin itself is not against the law, illegally tampering with electricity lines is a criminal offense under Section 37 of the Electricity Supply Act. Violators can face fines of up to 100,000 Malaysian ringgit (about $23,700) and a prison sentence of up to five years.

Meanwhile, authorities in Thailand recently exposed electricity theft used to power Bitcoin mining rigs. How did the case end up? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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