Malaysian police conducted three raids tied to illegal cryptocurrency mining and seized 41 machines used for the activity. 

The police are working to trace the ownership of the machines confiscated in Teluk Intan and identify the people running the operations. Authorities warn the public that illegal crypto mining is a criminal offense that poses safety risks and can cause property damage.

Is cryptocurrency mining legal in Malaysia?

Police in Hilir Perak confiscated 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 the first raid conducted on the night of January 9 resulted in the seizure of 24 machines. Two additional raids carried out early January 10 led to the seizure of the remaining 17 machines. Despite this, no arrests have been made.

The operations targeted three separate locations within the Teluk Intan area. All the suspects in the operations are being investigated for property damage and misuse of electricity supply, 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 to run cryptocurrency mining operations. The machines seized in Teluk Intan are suspected of being connected to illegal electricity supplies and stealing from the national power grid.

Unauthorized crypto mining operations often bypass electricity meters or tap directly into power lines to avoid paying for the massive amounts of electricity required to run mining rigs.

Over the years, Malaysian authorities have conducted raids across various states. Some of those operations led to the destruction of thousands of mining machines. The police previously publicly destroyed confiscated equipment using steamrollers as a deterrent to would-be illegal miners.

Malaysia advises against illegal crypto mining

There have been instances in Malaysia and other countries where illegal mining operations have caused electrical fires and building damage.

Illegal mining can cause safety risks and property damage because the equipment used for it generates substantial heat and requires proper cooling systems and electrical infrastructure to operate safely.

Illegal setups usually lack these safety measures.

Overloaded electrical systems can lead to fires, putting both the operators and surrounding properties at risk. Buildings where the illegal mining operations are carried out may suffer structural damage from the weight of equipment and the constant heat generation.

Power theft also contributes to higher electricity costs for legal users and can cause voltage fluctuations or power disruptions in certain areas. The extra load on the electrical infrastructure can lead to transformer failures and other equipment damage that requires costly repairs.

As reported by Cryptopolitan, Russian and Kazakh authorities have rolled out periodic restrictions on mining activities, especially during high-demand periods such as winter and holiday seasons.

Hilir Perak police have urged the public not to engage in illegal cryptocurrency mining activities. Citizens with information on suspected illegal mining operations are urged to contact the authorities and help identify and shut down these operations before they cause harm.

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