In Miri, Borneo, authorities have taken decisive action against an illegal cryptocurrency mining operation, thanks to a tip-off from the public.
The operation, discovered by Sarawak Energy, involved 34 cryptocurrency mining servers that were illicitly powered through cable tapping, using stolen electricity.
Following the tip-off, a swift crackdown ensued, resulting in the seizure of all equipment used in the illegal mining endeavor, including servers and tapping cables.
Local police have initiated an investigation into the matter, marking a significant victory against cryptocurrency-related crimes on the island.
According to Sarawak Energy’s estimates, the operation was siphoning approximately 6,000 Malaysian ringgits per month (equivalent to $1300) worth of stolen electricity.
This incident sheds light on the persistent issue of energy theft, despite the fact that Sarawak offers some of the lowest energy prices in Malaysia.
Interestingly, this was not the only instance of cryptocurrency mining illegalities in the region.
Earlier in 2023, another public tip-off led to the seizure of more than 137 cryptocurrency mining servers in the nearby state of Senadin, where Miri is situated.
Meanwhile, the global cryptocurrency market, particularly Bitcoin (BTC), has been experiencing a prolonged bear market that has strained many mining operations.
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Consequently, numerous mining firms and operators have resorted to selling BTC in unprecedented amounts to cope with the challenging market conditions.
On the other hand, the Bitcoin mining ecosystem has reached significant milestones in terms of network hash rate, which hit all-time highs in 2023, along with record network difficulty levels.
While this generally indicates the network’s resilience and increased competition among miners, it also poses challenges for smaller operators lacking the economies of scale enjoyed by larger players.
Operators benefiting from lower electricity prices tend to be more profitable, which is a contributing factor driving illegal mining operators to resort to stealing electricity from the grid.
By eliminating electricity costs, unlawful operators can generate profits and offset hardware expenses more easily.
As authorities continue their efforts to combat illegal cryptocurrency mining, the incident in Miri serves as a reminder of the importance of public vigilance and cooperation in safeguarding communities from such illicit activities.
Additionally, the broader cryptocurrency mining landscape must find ways to support smaller operators and address the challenges posed by volatile market conditions, ensuring a more sustainable and secure future for the industry.
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