Malaysian Authorities Destroy Approximately 1 Thousand Bitcoin Mining Machines

Malaysian Government destroys at least a thousand mining rigs relating to Bitcoin, which it had seized from the possession of miners on the allegations of electricity theft. All the seized properties were destroyed by running a steamroller on them causing damage of US$ 1.26 Million to the illegal miners. At least 8 individuals too have been arrested who were allegedly running mining facilities while stealing the electricity from the main grid.

The Malaysian Government had gone one step ahead of China in the initiation of its crackdown operation against the Malaysian Bitcoin miners. However, the situation in both countries is totally opposite. While China’s actions against miners are an abuse of authority but in Malaysia, the action is based on justice.

It was noted earlier by the Sarawak Energy Berhad (SEB) that some Bitcoin miners in the area were involved in malpractices. SEB, the electricity authority for the city of Miri, came to know that miners were stealing the electricity from the main grid. Upon information, the authority took along with its local police and raided several Bitcoin mining farms in the city. During the raids, the police captured at least 8 individuals running Bitcoin mining farms by utilizing stolen electricity.

During this operation, while arresting the electricity thieves, the authority also seized the equipment miners were using. It was reported that around 1,069 mining rigs for Bitcoin were taken into official custody. While the police were probing the arrested persons, the police also confirmed that they were stealing the electricity. The charges of theft and carrying out illegal activities have been imposed against the arrested persons.

The operation continued from February till April 2021 and within which time Bitcoin mining rigs amounting to US$ 1.26 Million were seized. At the end of the trial, the Malaysian Court ordered the demolition of the seized goods and imposed fines against the accused. The accused were further sentenced to serve jail time.

In the meanwhile, all of the seized Bitcoin mining rigs were lined up at a site for the purposes of their demolition. Thereafter all the seized rigs were flattened and turned into junk after running a steamroller on them.

Thereafter, Hakemal Hawari, Chief of Miri Police, issued an official statement. He said in the statement that 8 persons were arrested on the allegations of stealing electricity from the main grid. Out of these 8 persons, 6 were brought to trial, and charges were imposed against them under the Penal Code. The persons who have been charged shall also pay a fine of 8,000 RM along with 8 months in judicial lockup.

The Police Chief said that the message is loud and clear and has been duly passed onto the illegal miners. There will be no compensation for anyone found involved in carrying out illegal mining activities or stealing from the Government property.