Illegal Bitcoin Mining Setup Causes Explosion in Malaysia, Police Find Mining Rigs, Blower Fans

Malaysian police have uncovered an illegal Bitcoin mining setup after a blast occurred in a city on Tuesday. The explosion and smoke from the house were reportedly caused by the electricity consumption of BTC mining operations.

According to local reports , the blast occurred in the city of Puncak Alam, in Kuala Selangor district, Malaysia. District police chief Supt Mohd Hafiz Muhammad Nor noted that 14 volunteer firefighters were sent to the location after a neighbor complained about the explosion.

The police have seized nine Bitcoin mining rigs, nine blower fans and a D-link router in an uninhabited house.

“Firefighters and police on patrol had to break into the uninhabited house and the fire happened in a room with modified circuitry that shorted,” the police chief said in a statement.

The investigations found that the electricity had been connected illegally for bitcoin mining, he added.

Further, the police have opened an investigation window, urging locals familiar with the operations to report to the nearest station.

Malaysia’s Growing Illegal Crypto Mining Operations

The South-East Asian nation has been struggling to address its growing illegal Bitcoin mining power theft in the recent past. The country has lost as much as 3.4 billion Ringgit ($763 million) from 2018, a local report noted.

In 2021, illegal cryptocurrency mining in Malaysia hit an all-time high , according to a Criminal Investigation Department (CID) chief.

According to Malaysian Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir, energy thefts due to illegal crypto mining activities are “becoming widespread.”

“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.”

Energy Firms Aid in Detecting Abnormal Electricity Usage

Energy supply companies in the country have been detecting this unusual usage of energy using various methods, the Minister said.

For instance, Sarawak Energy , the state-owned electric utility firm, has been working closely with the Ministry of Utility and Telecommunication Sarawak to improve its methods for detecting new electricity theft techniques.

In a post on X, Minister Akmal Nasir said that the government is looking to implement “the energy transition agenda.” This is to increase new energy sources in the country.

“But at the same time, electricity theft amounting to hundreds of millions, sometimes reaching billions of ringgit per year, occurs in our country.”

While Bitcoin mining is not illegal in Malaysia, the act of electricity theft for mining is deemed unlawful. The Universiti Teknologi MARA clarified this in December 2022.