Malaysian Authorities Crush Nearly $450,000 Worth of Bitcoin Mining Rigs
Malaysian authorities crushed 985 Bitcoin mining rigs amid a crackdown on electricity theft in the country. The operation, led by the Perak District Police Headquarters, aimed to destroy equipment used in Bitcoin mining activities. The circulating video shows a heavy-duty steamroller slowly running over the mining rigs in an attempt to dispose of them. However, many rigs appear to have survived the initial destruction.
Electricity Theft and Bitcoin Mining
Bitcoin mining is an energy-intensive activity that can result in high electricity bills. The Malaysian government is cracking down on electricity theft associated with crypto mining groups. Margins for Bitcoin miners are getting slimmer, leading some miners to explore ways to reduce their expenses creatively.
- Over a five-year period, Malaysia reported $776 million worth of electricity stolen by crypto mining groups.
- In 2020, a case involved illegal wiring that allowed two mining operations to rack up only $14.48 in electricity bills despite allegedly stealing over $600,000 worth of power.
The Destruction Operation
Authorities destroyed the seized property resulting from a year’s worth of raids in Seri Iskandar, a town in Malaysia. Last week, seven individuals were arrested for their involvement in illegal Bitcoin mining activities near the capital city. The ongoing battle against electricity theft by Bitcoin miners has led to drastic actions like the recent destruction of mining rigs.
- In a similar incident in 2021, 1,069 Bitcoin miners were crushed with a steamroller after being linked to electricity theft.
Hot Take: Malaysian Crackdown on Bitcoin Mining
In conclusion, Malaysian authorities are stepping up efforts to combat electricity theft in the crypto mining sector. The recent destruction of almost $450,000 worth of Bitcoin mining rigs highlights the government’s zero-tolerance approach towards illegal mining activities. Miners should be aware of the consequences of engaging in unauthorized operations to avoid facing severe penalties.
Sources:
1. Malaysia Gazette
2. Local Media Report
3. Official Statement
4. Vice Article
5. The Star Report
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