Illegal Bitcoin mining operation explodes in Malaysia

An illegal bitcoin mining operation has been discovered in a house in Malaysia, adding to the country’s electrical network toll and contributing to the trend of electricity flight led by illegal mining activities.

On February 13, an explosion and smoke in a house in Kuala Lumpur led the authorities to discover an illegal bitcoin mine operation, as indicated by Malaysian mail. The firefighters responded to the scene after a local resident reported the incident. During the investigation, they found a part with modified electric wiring which had caused a fire.

Once the fire is turned off, those responsible discovered several bitcoin extraction platforms and related equipment. It was also confirmed that electricity had been used illegally for the operation. The authorities have launched an investigation and urged anyone with information to come forward.

The illegal exploitation of Bitcoin, which involves drawing on unauthorized electricity to supply computers to solve complex algorithms and gain bitcoin, has become a growing problem in Malaysia. Earlier in October 2024, the country’s national electricity supplier, Tenaga Naséal Berhadsaid losses of more than 440 million ringgit (around $ 101 million) due to electricity flight. In July 2024, TNB reported This illegal Bitcoin exploitation cost him $ 755 million from 2018 to 2023.

The question of illegal Bitcoin exploitation is a growing trend in many countries. In Iran, the extraction of unauthorized crypto was responsible for electricity shortages because the country was struggling with a serious heat wave in the Summer 2024. The authorities discovered 230,000 illegal mining platforms, consuming up to 900 megawatts of electricity – equivalent to the consumption of a province with 1.4 million people. Many of these operations have been found in schools and mosques, which receive subsidized electricity. In May, Venezuela implemented a ban On the exploitation of cryptography, citing the need to protect the country’s electricity network due to excessive energy consumption caused by mining activities.