Malaysian Authorities Crush 985 Bitcoin Mining Rigs
l Credit: Andy Soloman/UCG/Universal Images Group via Getty Images
Key Takeaways
- Perak Tengah District Police in Malaysia shut down 985 Bitcoin rigs on Aug. 19 as part of the countrywide crackdown on electricity theft.
- The mining rigs were seized from various enforcement actions across the district in the past three years.
- Malaysia faces an uphill battle against electricity theft for illegal crypto mining, losing over $720 million in the past six years.
Malaysian police authorities destroyed 985 Bitcoin mining rigs on Monday, Aug. 19, worth about 1.98 million Malaysian ringgits ($452,500).
The Police authorities used a steamroller to crush the machines as part of their crackdown on electricity theft linked to crypto mining.
Perak Tengah District Joins the Countrywide Crackdown
The Perak Tengah district police carried out the latest enforcement action after obtaining court approval.
The District Police Chief, Superintendent Hafezul Helmi Hamzah, told Malaysian Gazzete that he and his team confiscated the mining rigs during 24 raids in 2022, nine in 2023, and one in 2024.
He added that his team carried out most raids around Seri Iskandar, a major town, for over a year. Superintendent Hafezul Helmi Hamzah and his team also arrested two individuals, identifying them as the accused in the case.
The Police chief said that the crypto mining rigs’ disposal process follows the national disposal guidelines for e-waste and solid waste.
Perak Tengah is one of many districts where electricity theft for crypto mining has become a problem. Only last week, Sepang district police arrested seven individuals for operating Bitcoin mining rigs using stolen electricity.
The viral picture from Malaysia crushing the Bitcoin mining machines has become a yearly event as the authorities crack down on illegal crypto mining.
Unlike countries like the United States or China, where authorities often auction off seized goods, Malaysia destroys these confiscated items.
Malaysia’s Growing Bitcoin Mining Problem
Malaysia has seen a dramatic increase in electricity theft linked to crypto mining over the past three years.
Starting in 2021, a viral picture/video of a steam roller crushing millions of dollars worth of Bitcoin mining rigs hit the internet, garnering attention from crypto enthusiasts worldwide.
In July 2021, Malaysian authorities in Miri laid out 1069 Bitcoin mining rigs in a Police parking lot, crushed the machines, and videotaped the event for the world to see.
In July earlier this year, the Malaysian authorities collectively destroyed over 2,022 seized items worth RM2.2 million ($502,000), including bitcoin mining rigs.
Malaysia’s Deputy Energy and Water Transformation Minister Akmal Nasrullah Mohd Nasir revealed last month that the country has lost at least $722 million in electricity thefts linked to crypto mining over the past six years.
Malaysia’s Crypto Mining Problem Has a China Connection
The increase in Bitcoin mining using electricity theft coincides with the ban on Bitcoin mining in China.
China was one of the largest hubs for Bitcoin mining until 2021 when the Beijing authorities imposed a blanket ban on all crypto-related activities. This forced several individuals and large mining farms to relocate.
Many miners relocated to South Asian countries like Malaysia, Indonesia, Laos, and Thailand thanks to their cheap electricity options. However, despite cheaper electricity, the miners have indulged in illegal mining.
