Energy Minister: Illegal bitcoin mining resulted in the loss of more than RM2.3 billion in the past four years

Energy and Natural Resources Minister, Datuk Seri Takiyuddin Hassan, said that there is a recorded 400% increase in illegal bitcoin mining in the past four years. The increase also resulted in an estimated loss of more than RM2.3 billion.

There are a total of 7,209 cases were detected, with the number of cases increasing every year. Specifically, there were 610 cases in 2018, 1,043 in 2019, 2,465 in 2020, and 3,091 in 2021.

“The increase in cases is a worrying trend, as it affects not only the energy industry in terms of value, but also the stability of the electricity supply system and public safety,” Datuk Seri Takiyuddin said in a statement.

Bitcoin mining—the process by which new bitcoins are entered into circulation—is performed using sophisticated hardware (like a computer) that solves an extremely complex computational math problem. The first computer to find the solution to the problem is awarded the next block of bitcoins and the process begins again.

The “mining computers” use an extreme amount of power 24 hours a day—and it isn’t cheap. The illegal tampering with meter installations results in the reading on the meter that no longer shows the actual electricity consumption. Consequently, it disrupts the stability of electricity supply as demand exceeded capacity—affecting business activities and people’s comfort.

“A lot of times when you see the news in Malaysia, stores and shoplots are caught and their mining equipment confiscated… because, if you use RM100 of electricity, and get RM80 worth of bitcoin, your operation is not profitable. But if you use RM0 electricity and get RM80 of bitcoin, it will be profitable. For bitcoin, it takes tens of millions to create 1 bitcoin, possibly even more. A lot of machines worldwide are competing to solve that block,” explains Shahrizan Ferouz, admin of the Cryptocurrency Malaysia FB group.

Datuk Seri Takiyuddin warns that any individual found involved in power theft by tampering with the installations of Tenaga Nasional Berhad (TNB) could be fined not more than RM1,000,000 or imprisonment not more than 10 years, or both, under the Electricity Supply Act 1990. Individuals who commit such offences can also be prosecuted under Section 379 and Section 427 of the Penal Code for theft and mischief, respectively.

He also urges the cooperation of various agencies—especially the Royal Malaysia Police (PDRM), Energy Commission (ST), TNB and local authorities in combating these illegal activities. Members of the public who suspect or have information on power theft are advised to contact ST, TNB or PDRM, too.

Cryptocurrency mining doesn’t just affect the loss of millions. It can also result in environmental damage, which you can read more about in my article about NFTs.

[ SOURCE, IMAGE SOURCE ]

Related reading

• This is the environmental impact of NFTs
• Could this be the end of crypto? EU regulator wants to ban Proof of Work mining