An explosion in Bandar Puncak Alam, Malaysia, on Feb 11, 2025, exposed an illegal Bitcoin mining operation. Locals observed fire and thick smoke, which prompted emergency responders to respond.
After extinguishing the fire, authorities discovered nine Bitcoin mining rigs connected to an illicit power supply.
The incident reflects ongoing instances of stealing electricity associated with cryptocurrency mining in the region, raising concern over public safety and regulation enforcement.
Uncovering the Bitcoin Mining Operation
Following a fire and explosion reported at 11:41 AM, fourteen volunteer firefighters arrived at a house in Bandar Puncak Alam to find it unoccupied. However, a room was discovered to have short-circuited altered wiring.
The fire was extinguished at 4:45 PM, after which a joint effort between police and Tenaga Nasional Berhad (TNB) personnel uncovered nine Bitcoin mining devices, nine blower fans, and a D-Link router connected to a pirate power supply.
Malaysia’s Bitcoin Mining Predicaments
As cryptocurrency becomes popular, it leads to a rise in illegal mining, which has caused great power theft in Malaysia. Between 2018 and 2023, the country lost approximately $723 million because of the illegal use of power.
The state-issued power operator, Tenaga Nasional Berhad (TNB), has been affected, suffering losses of over $100 million annually.
The illicit business overloads the grid and introduces safety risks by tampering with electrical infrastructure. It also leads to carbon emissions, aggravating ecological challenges.
However, Bitcoin mining is allowed in Malaysia, but power theft is a crime under Section 37 of the Electricity Supply Act. If caught, violators can be fined up to RM100,000 ($23,700 USD) or be sentenced to up to 5 years imprisonment.
The government, such as Tenaga Nasional Berhad (TNB) and the police, carry out raids to stop such activities. In August 2024, seven suspects were apprehended for mining-related electricity theft. The government has even used steamrollers to demolish seized mining rigs.
The illegal mining operation in Bandar Puncak Alam is an example of the threats to public safety and energy grid stability posed by cryptocurrency-related power theft.
These illicit activities damage Bitcoin’s reputation. Sustainable solutions, such as miners using renewable energy and proper regulations, are essential to mitigate these risks.
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