Malaysian authorities have taken decisive action against illegal Bitcoin mining by destroying 985 rigs in a nationwide crackdown on electricity theft. The operation, led by the Perak District Police Headquarters, involved crushing the seized equipment using a heavy-duty steamroller.
Despite the effort, some rigs appeared resilient, withstanding the initial destruction. The confiscated mining equipment, estimated to be worth approximately 1.98 million RM ($450,000), was destroyed as part of ongoing efforts to combat electricity theft, a prevalent issue linked to cryptocurrency mining activities in Malaysia.
Authorities target electricity theft in Crypto mining
Malaysia is ramping up its crackdown on electricity theft associated with illegal Bitcoin mining. Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir revealed that between 2018 and 2023, Malaysian crypto miners stole electricity valued at $722 million.
Akmal emphasized that these illegal mining activities often go undetected because miners operate without meters on their premises. However, energy supply companies have developed various methods to identify unusual energy consumption patterns in affected areas, allowing authorities to pinpoint and address these illegal operations.
A recent operation in Seri Iskandar, three hours from Kuala Lumpur, arrested seven individuals involved in Bitcoin mining. Sepang District Police Chief ACP Wang Kamarul Azran Wan Yusof highlighted that these special operations aim to uncover and curb illegal mining and the associated theft of electricity.
Global efforts to combat Bitcoin mining
Countries worldwide are increasingly taking action against Bitcoin mining due to its significant energy consumption and environmental impact. China led this effort in 2021, banning Bitcoin mining to conserve energy and achieve climate goals. Other nations have followed suit, with Kosovo implementing a ban in 2022 to address an energy crisis.
Angola introduced legislation in April 2024 to protect its electrical grid and ensure energy security. Scandinavia has also seen growing restrictions, with Iceland halting new mining requests and Norway proposing bans while removing tax incentives. In Sweden, the Bitcoin mining industry faced a significant setback in July 2023 when the government eliminated tax breaks, partly due to the energy price increases linked to the ongoing war in Ukraine.
Bitcoin mining’s energy consumption
Bitcoin mining’s energy consumption has become a growing concern globally. According to the University of Cambridge, the Bitcoin network consumed 147.3 terawatt-hours annually as of January 19, 2024. This energy consumption nearly matches that of countries such as Ukraine, Malaysia, and Poland, highlighting the significant environmental impact of cryptocurrency mining.
As governments worldwide continue to grapple with the challenges posed by Bitcoin mining, Malaysia’s recent crackdown on illegal mining operations underscores the ongoing efforts to address electricity theft and the broader environmental concerns associated with cryptocurrency mining.