On Monday, Malaysian authorities destroyed 985 Bitcoin mining rigs in a nationwide crackdown on electricity theft. The Perak District Police Headquarters led the operation, crushing the equipment using a heavy-duty steamroller. Despite the effort, many rigs appeared to withstand the initial destruction.
The seized equipment, valued at around 1.98 million RM ($450,000), was disposed of in an attempt to tackle electricity theft, an issue in Malaysia often associated with Bitcoin mining activities.
Malaysia is actively cracking down on electricity theft
According to the Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir, Malaysian crypto miners stole $722 million worth of electricity between 2018 and 2023.
The deputy minister commented on this development:
“The electricity theft by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises. Energy supply companies have various methods to detect unusual energy consumption in an area.”
Akmal Nasrullah Mohd Nasir
A recent crackdown in Seri Iskandar, situated three hours away from Kuala Lumpur, is part of Malaysian authorities’ efforts to combat illegal mining activities. Last week, seven individuals were apprehended for their involvement in Bitcoin mining operations in towns near the capital.
Sepang District Police Chief ACP Wang Kamarul Azran Wan Yusof stressed that the special operations were aimed at uncovering illegal mining activities and associated electricity theft.
Countries around the world are combating Bitcoin mining
Countries around the world are increasingly cracking down on Bitcoin mining due to its substantial energy consumption and environmental impact. In 2021, China led the charge by banning Bitcoin mining to conserve energy and meet climate goals.
More recent bans include Kosovo’s 2022 decision to outlaw Bitcoin mining in response to an energy crisis and Angola’s April 2024 legislation aimed at protecting its electrical grid and energy security. In Scandinavia, countries like Iceland and Norway are imposing restrictions due to rising energy demands, with Iceland halting new mining requests and Norway proposing bans and removing tax incentives.
Sweden also ended its Bitcoin mining industry in July 2023 by eliminating tax breaks, partly due to the energy price increases caused by the war in Ukraine.
According to the University of Cambridge, the Bitcoin network’s energy consumption reached a staggering 147.3 terawatt-hours per year as of January 19, 2024, nearly matching the annual energy consumption of entire countries like Ukraine, Malaysia, and Poland.
