Authorities in Miri on the island of Borneo have shut down and seized the equipment of an illicit cryptocurrency mining operation stealing power from the local grid.
According to the Borneo Post, Sarawak Energy discovered 34 cryptocurrency mining servers operating with stolen electricity through cable tapping.
Authorities seized all of the operation’s equipment, including servers and tapping cables, and detectives are currently investigating the most recent mining operation to be shut down on the island.
Sarawak Energy estimated that the operation was stealing electricity worth approximately $1300 per month. The utility announced that although Sarawak has some of the lowest energy prices in Malaysia, energy theft is still a problem.
Earlier in 2023, authorities in Senadin, where Miri is located, seized more than 137 cryptocurrency mining servers in response to a public alert.
According to recent reports, Bitcoin (BTC) miners continue to endure a protracted bear market that has strained many operations. This has prompted several mining companies and administrators to sell Bitcoin in record quantities over the past few months.
The Bitcoin mining ecosystem has also recorded several significant metrics, including the network hash rate reaching all-time highs in 2023, which coincided with network difficulty reaching all-time highs.
This typically indicates that the Bitcoin network is at its most resilient, with a record number of miners competing for block rewards and securing the network. Still, it also strains smaller operators that lack the economies of scale of larger operations.
Moreover, operators with lower electricity prices have the potential to be more profitable, which is another factor that motivates illegal mining operators to siphon electricity from the grid. This eliminates the electricity costs associated with mining, allowing illicit operators to bank profits to pay for hardware.
