Wednesday, 9 April 2025

Electricity theft linked to cryptocurrency mining uncovered

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Attempts to muffle the sound from the mining servers using sponge insulation were discovered - a dangerous practice that can cause the equipment to overheat and increase the risk of fire.

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SIBU: Sarawak Energy Bhd (SEB), in collaboration with its operational and retail subsidiary Syarikat SESCO Bhd (SESCO), alongside the police, uncovered two instances of illicit appropriation of electricity associated with the mining of cryptocurrency at two distinct three-storey commercial premises situated along Jalan Tun Ahmad Zaidi Adruce here recently.

In its press release, SEB said both premises were found to be stealing electricity through direct tapping, bypassing metering and safety measures.

“SESCO’s meter-inspection team discovered a total of 36 cryptocurrency mining servers operating on the second floors of both premises.

“Investigations revealed that neither premises had electricity meters installed, and that the power supply was being tapped from improperly-installed mains wiring.

“Both cases of power theft have resulted in a total estimated loss of RM25,000 over the course of a month.

“In addition, sponge was used to muffle the sound from the mining servers, a dangerous practice that can cause the equipment to overheat and increase fire risks,” it said.

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SEB added that police reports have been lodged, and the cases are being investigated under Section 33(5) of the Electricity Ordinance.

“Those found guilty of electricity theft face severe penalties, including fines of up to RM200,000 and/or imprisonment of up to five years.

“Power theft poses serious safety hazards, including fire hazards, electrocution, and potential damage to electrical infrastructure.

“Cryptocurrency mining operations, in particular, consume excessive amounts of electricity, often overloading the electrical system and increasing the risk of fire.

“Illegal connections also endanger neighbouring properties, making them vulnerable to power disruptions and accidents.

“Property owners are advised to ensure their tenants comply with electricity regulations and to conduct regular monitoring of their premises as landlords may also be held liable for illegal activities on their properties,” SEB added.

Reports can be made anonymously to SESCO’s Customer Care Centre at 1300 88-3111, via email at customercare@sarawakenergy.com or through the SEB Cares app.

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