By Michael Scott
An energy supplier in Malaysia exposed an illicit cryptocurrency mining operation involved in the theft of power from the local grid on the island nation of Borneo.
After a tipoff from the public, a criminal mining operation on the island of Borneo was shut down by authorities in the town of Miri. Additionally, the equipment used for the operation was seized.
The Borneo Post, a local news outlet, wrote that Sarawak Energy uncovered this operation involving 34 servers connected to a stolen power source to mine crypto via cable tapping.
Authorities impounded all equipment utilized in this operation, which includes tapping cables and servers. Additionally, local law enforcers are examining the most current mining process to be dismantled on the island.
Low Energy Prices Fail to Persuade and Avert Energy Theft
Sarawak Energy’s findings revealed that the operation utilized an estimated 6000 Malaysian ringgits per month ($1300) of stolen electricity. A statement by the utility firm lamented that despite Sarawak providing some of the lowest energy costs in the nation, the theft of energy is still a major problem.
Another tipoff in 2023 led to authorities in the state of Senadin, Miri’s location, impounding more than 137 cryptocurrency mining servers. A recent report shows that Bitcoin miners continue enduring a protracted bear market that has strained numerous operations. As such, many mining operators and companies have been compelled to sell BTC in record amounts over the past months.
Illicit Mining Motivated by Higher Profits
The Bitcoin mining system has recorded several critical metrics, with the hash rate attaining the highest prices this year. This corresponds with rising network challenges. This situation indicates that the Bitcoin network is most resilient amid several miners competing for block rewards as they secure the network. However, it imposes pressure on the small operators lacking the economies of scale that bigger miners enjoy.
It is also worth noting that operators with lower electricity prices are more likely to be profitable, which is another motive behind the tendency for illicit mining activities to pilfer electricity from the system. This eliminates the electricity operation costs of mining, permitting illicit operators to reap profits and settle hardware costs.