Between 2018 and 2023, illegal crypto mining operators in Malaysia have misappropriated $723 million in electricity.
Akmal Nasrullah Mohd Nasir, Malaysia’s Deputy Minister of Energy Transition and Water Transformation disclosed this information at an event that resulted in the destruction of approximately $467,000 in confiscated items, including Bitcoin mining machinery and electrical equipment.
Nasir underscored that these illegal mining operations harm Malaysia’s state-controlled power operator and the local communities in the affected areas.
Energy Companies Can Detect Abnormal Usage
Those who engage in electricity theft typically avoid registration with the appropriate authorities and divert power from existing lines or circumvent electricity meters.
Nevertheless, Malaysian officials were able to confiscate more than 2,000 items during an operation in October 2022, as energy supply companies can employ a variety of methods to detect abnormal energy consumption in a given area.
In December 2022, Malaysia’s Universiti Teknologi MARA clarified that swiping electricity for mining purposes is considered unlawful, even though mining cryptocurrency itself is not illegal in Malaysia.
Nasir has emphasized that the Malaysian authorities have been instituting measures against cryptocurrency miners since at least August 2019 and that these actions comply with the country’s criminal procedure laws.
As part of the disposal procedure, specific seized machines have been crushed by a steamroller.
Nasir also mentioned that the Ministry of Energy Transition and Water Transformation has prioritized preventing illicit mining activities and its initiatives to enhance Malaysia’s renewable energy sources.
Malaysian authorities have implemented measures against unregistered cryptocurrency exchanges in addition to addressing illicit mining operations.
Huobi Global, a cryptocurrency exchange, was ordered by the Securities Commission Malaysia to cease operations in May of the previous year due to its failure to register its trading services.
Malaysia’s sole registered cryptocurrency trading platforms are HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International.
Detection of Forex and Crypto Investment Fraud in Malaysia
In May, Malaysian authorities dismantled a cryptocurrency syndicate and forex investment fraud operating in the country.
From May 13 to 21, the syndicate was the target of a series of investigations conducted throughout the Klang Valley. The syndicate had been laundering funds collected through overseas scams.
Subsequently, eight local males and two women were apprehended, and substantial assets were confiscated.
During the inspections, law enforcement officials confiscated one hundred twenty-nine vehicles with exclusive registration number plates, estimated to be worth $3.8 million.
Furthermore, they confiscated 75 luxury vehicles valued at $1.7 million, 18 branded timepieces valued at $2.1 million, over $100,000 in cash, and many other assets.
Additionally, the investigation resulted in the freezing of bank accounts aggregating $10.8 million.