Malaysian authorities pulverized Bitcoin mining rigs as part of the countrywide crackdown on electricity theft. 

The authorities crushed nearly 1000 Bitcoin mining rigs on Monday, August 19. The incident in a viral video reveals the authorities using a heavy-duty steamroller to destroy the mining rigs. 

The move to destroy the rigs is part of efforts to resolve electricity theft associated with the crypto miners. 

Malaysia Authorities Destrong Illegal Mining Equipment

The video shows the heavy-duty steamroller destroying the rigs that appear to survive the first round. Equipment worth $450,000 was destroyed during the operation. Notably, the Perak District Police led the operation, per a publication by the Malaysia Gazette.

The seized equipment was destroyed after the Malaysian government declared a crackdown on electricity theft. Bitcoin mining involves an energy-intensive activity capable of racking electricity bills, to the dismay of those who pay for them and climate activists. 

With margins from Bitcoin mining slimmer, Malaysian miners seek to overcome this stress by creatively reducing expenses. 

Such efforts saw Malaysia experience a $776 million loss of electricity theft in five years. The country’s deputy minister in Energy Transition and Water Transformation, Akmal Nasir, attributes the theft to crypto mining groups.

The case is reminiscent of a 2020 incident when Malaysian police revealed electricity theft occurs via illegal wiring circumventing the meter. The creativity saw two mining operations have electricity bills capped at $14.48 despite stealing over $600,000 of power. The destroyed miners were seized during the raids executed in Seri Iskandar, a town three hours away from Kuala Lumpur city. 

The raids executed last week saw seven individuals arrested for alleged involvement in Bitcoin mining operations near the capital city. Wang Azran, who heads the Sepang District Police, disclosed in a statement the target of the special operation detecting illegal BTC mining activities powered through stolen electricity.

The fight against electricity theft has been an ongoing battle. In 2021, the authorities crushed 1,069 Bitcoin miners using a towering steamroller for their involvement in electricity theft. The raid saw six arrested and handed an eight-month jail time.  

Thai Crackdown Against Illegal Bitcoin Mining

The crackdown against illegal Bitcoin mining behind the power outages is a global initiative. The clampdown extends in Thailand, with authorities raiding illegal mining on Saturday, August 24, to the west of Bangkok. 

The raid featured a coordinated process by the Provincial Electricity Authorities (PEA) and police at a residence in Ratchaburi. The raid occurred following complaints by residents alleging frequent blackouts within the area since mid-July. 

The head of district security, Jamnong Chanwong, confirmed the discovery of mining rigs, indicating that the residents were operating a mine in the house without fully paying for the power used. 

The security chief informed AFP that the electricity consumption records showed a massive uptake, although the residents paid very little. 

Thai authorities revealed that mining virtual currencies involve deploying power-intensive computers. While Bitcoin miners are classified as manufacturers, they should pay associated taxes. Nonetheless, illegal mining has been rising for years. 

Jamnong revealed that the team attempted to enter the residence on Friday, August 23, but the guard denied entry. When the officers returned armed with a search warrant, they found most of the mining equipment moved. 

Jamnong confirmed that a company rented the house for four months. Nevertheless, the power outages emerged in mid-July, perhaps when the mining operations became fully operational. 

A South China Morning Post (SCMP) publication indicates that the officers failed to arrest during the raid on the house. The incident was the fourth instance in which the authorities raided an illegal mining facility this year within the Ratchaburi province.  

Per the report from Thai authorities, the development follows the high-profile bust of an illegal mining operation that seized 650 mining devices. Besides the seizure of equipment valued at $5 million, the authorities arrested three.