Malaysian police conducted three raids related to illegal cryptocurrency mining and seized 41 machines used in the operation.
Police are tracing the ownership of the machines confiscated at Tel Quintan and are working to identify the person who operated them. Authorities are warning the public that illegal cryptocurrency mining is a crime that poses safety risks and can cause damage to property.
Is crypto mining legal in Malaysia?
Police in Hilil Perak state have seized 41 machines suspected of being used for illegal cryptocurrency mining after a series of coordinated raids in Teluk Intan.
Hilir Perak police chief Bakri Zainal Abidin confirmed that 24 machines were seized during the first raid on the night of January 9. Two more attacks were carried outAnd hahaOn April 10, the remaining 17 machines were seized. Despite this, no arrests have been made.
The operation targeted three separate locations within the Teluk Intan region. All suspects involved in the operation are being investigated for property damage and misuse of electricity supplies, both of which are criminal offenses under Malaysian law.
Cryptocurrency mining itself is not illegal in Malaysia, but it is illegal to steal electricity or damage property in order to conduct virtual currency mining operations. The machines seized in Teluk Intan are suspected of being connected to an illegal electricity supply and stolen from the national power grid.
Illegal cryptocurrency mining operations often bypass electricity meters or connect directly to power lines to avoid paying for the large amounts of electricity required to run mining rigs.
Malaysian authorities have carried out raids in various states over the years. Some of these operations led to the destruction of thousands of mining machines. Police had previously used steamrollers to publicly destroy seized equipment as a deterrent to illegal miners.
Malaysia advises against illegal virtual currencies mining
Illegal mining operations have led to electrical fires and building damage in Malaysia and other countries.
Illegal mining can pose safety risks and property damage because the equipment used in illegal mining generates large amounts of heat and requires proper cooling systems and electrical infrastructure to operate safely.
Illegal setups usually lack these safety measures.
Overloading electrical systems can cause a fire and endanger both the operator and surrounding property. Buildings where illegal mining operations are taking place can suffer structural damage due to the weight of equipment and continued heat generation.
Power theft can also lead to higher electricity bills for authorized users and can cause voltage fluctuations and power outages in certain areas. Extra loads on electrical infrastructure can lead to transformer failure and other equipment damage, requiring costly repairs.
As reported by Cryptopolitan, Russian and Kazakh authorities have introduced periodic restrictions on mining activities, especially during periods of high demand such as winter and the holiday season.
Hilil Perak state police appealed to the public not to participate in illegal cryptocurrency mining activities. Citizens with information about suspected illegal mining operations are urged to contact authorities and help identify and shut down these operations before they cause harm.