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A fire caused by an explosion in an empty house in Bandar Puncak Alam, Malaysia led authorities to the discovery of an illegal Bitcoin mining operation, highlighting ongoing concerns over electricity theft linked to cryptocurrency mining in Malaysia.
According to the Malay Mail, the explosion occurred on Tuesday morning at a residence along Lorong Cekara Purnama, prompting a local woman to contact the police. Fourteen volunteer firefighters were dispatched to the scene, where they forced entry into the unoccupied house to extinguish the fire.
Sungai Buloh district police chief Supt Mohd Hafiz Muhammad Nor confirmed that the fire originated in a room with a modified electrical setup that had short-circuited. Following the incident, police and personnel from utilities company Tenaga Nasional Berhad (TNB) inspected the property and discovered an illegal electricity connection powering a Bitcoin mining setup.
Authorities seized nine Bitcoin mining rigs, nine blower fans, and a D-Link router, the Malay Mail reported.
An investigation has been launched under Section 427 of the Penal Code, which covers mischief resulting in damage, and Section 37(1) of the Electricity Supply Act 1990, which criminalizes unauthorized electricity connections. Authorities have urged anyone with information to come forward.
Illegal Bitcoin mining has been a persistent issue in Malaysia due to the country’s relatively low electricity costs, making it an attractive destination for miners seeking to maximize profits. However, unauthorized operations often rely on electricity theft, causing significant losses to TNB and creating safety hazards, including electrical fires.
Growing Concerns Over Illegal Bitcoin Mining
The incident in Bandar Puncak Alam is the latest in a series of illegal Bitcoin mining cases across Malaysia, many of which have resulted in financial losses for unsuspecting property owners.
Just last month, Malay Mail reported that 45 landlords and business operators had been saddled with a combined RM8.5 million ($1.92 million) in unpaid electricity bills due to illicit mining activities conducted by tenants using stolen identities.
In one case, a wheelchair-bound property owner, KC Teo, discovered that his tenant had used a false identity to rent his house for illegal Bitcoin mining, leaving him with an electricity bill of RM300,000. Another victim, Tom, found that fraudsters had used fake Companies Commission of Malaysia (SSM) documents to register 10 TNB accounts under his business, resulting in RM700,000 in unpaid bills.
These cases have prompted calls for stronger enforcement measures. Petaling Jaya MP Lee Chean Chung has urged TNB to establish a dedicated task force to combat illegal Bitcoin mining, arguing that the power utility company should evaluate each case on its merits rather than holding landlords solely responsible for fraudulent electricity usage. He plans to raise the issue in Parliament to push for fairer accountability among property owners, tenants, and electricity suppliers.
