Authorities in Malaysia discovered an illegal Bitcoin mining operation in a residential home following an explosion and fire on February 13, according to local news outlet Malay Mail.
Emergency responders were alerted to smoke and an explosion at the house, leading firefighters to extinguish the flames. Upon inspection, they found a concealed room containing multiple Bitcoin mining rigs and modified electrical wiring.
Officials confirmed that the operation had illegally siphoned electricity, a growing issue linked to underground crypto-mining activities. Authorities have since launched an investigation and urged the public to provide any relevant information regarding the illicit setup.
Malaysia is facing a rise in unauthorized Bitcoin mining, straining its power grid. Tenaga Nasional Berhad (TNB) reported significant financial losses due to electricity theft related to crypto-mining, totalling over 440 million ringgit (about $101 million) in October 2024. From 2018 to 2023, overall losses from these illegal operations reached 3.3 billion ringgit ($755 million).
This issue extends far beyond Malaysia. In Iran, authorities have intensified efforts to combat illegal crypto mining due to its contribution to power shortages, especially during extreme weather. During the summer of 2024, officials discovered 230,000 unauthorized mining rigs using approximately 900 megawatts of electricity, sufficient for a province of 1.4 million people. Many of these operations were in places with subsidized electricity, like schools and mosques.
In May 2024, Venezuela implemented a nationwide ban on cryptocurrency mining due to concerns about energy consumption. Officials aimed to protect the country’s power infrastructure, struggling to handle the high electricity demands from mining operations.
Alongside illegal Bitcoin mining, cryptocurrency-related fraud has become a growing concern in Malaysia. In another incident, a 63-year-old former Malaysian engineer fell victim to a cryptocurrency investment scam, losing RM9.47 million (over $2 million). According to The Edge Malaysia, Police Chief Datuk M. Kumar stated that authorities received the victim’s report on January 14, 2025.
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