Jai Sahu
From 2018 to 2023, unauthorized crypto mining operators in Malaysia have illicitly appropriated electricity valued at $723 million.
During a recent event, Malaysia’s Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, disclosed these figures as authorities destroyed around $467,000 worth of confiscated items, including Bitcoin mining devices and other electrical equipment.
Nasir highlighted the severe implications of these illegal activities on both Malaysia’s state-run power operator and the local communities within the affected regions.
Detection of Energy Theft by Utilities
Individuals involved in electricity theft often bypass official registration and manipulate electricity meters or illegally divert power directly from the grid.
“The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises.”
Despite these covert tactics, power companies have methods to detect unusual energy usage patterns, which in October 2022 helped Malaysian authorities seize over 2,000 items during a significant operation.
While cryptocurrency mining is legal in Malaysia, using stolen electricity for such operations is not, as highlighted by Malaysia’s Universiti Teknologi MARA in December 2022.
The Malaysian government has intensified its crackdown on illegal cryptocurrency mining since August 2019, as per Nasir, who noted that these actions are consistent with national criminal laws.
Some confiscated mining equipment has been destroyed using a steamroller as part of the disposal strategy.
Nasir also noted the Ministry’s ongoing commitment to curbing illegal mining activities and promoting renewable energy initiatives.
Authorities have also taken steps against unregistered cryptocurrency exchanges. In the previous year, the Securities Commission Malaysia mandated the shutdown of Huobi Global for operating without registration, leaving only HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International as registered entities.
Crackdown on Forex and Crypto Fraud Schemes in Malaysia
In May, Malaysian authorities dismantled a substantial forex and cryptocurrency fraud syndicate.
This group, involved in laundering money from international scams, was targeted in multiple raids across the Klang Valley from May 13 to 21.
The operations led to the arrest of eight men and two women, and the seizure of significant assets including 129 vehicles with unique number plates valued at $3.8 million, 75 high-end watches worth $2.1 million, and 18 luxury cars totaling $1.7 million.
Over $100,000 in cash was seized, and bank accounts holding $10.8 million were frozen, marking a significant blow to the fraudulent operations.