Illegal Bitcoin Mining Operation in Malaysia Causes Explosion

An illegal Bitcoin mining operation in Malaysia has led to a disaster as it resulted in an explosion of an uninhabited house. The incident took place in the Kuala Selangor District, specifically the city of Puncak Alam. The blast was the result of excessive electricity usage and raised an alarm among local authorities.

Major Mining Equipment Was Seized On-Site

After authorities showed up at the blast site, they discovered a vast amount of mining equipment in the house. This included 9 Bitcoin mining rigs, a D-Link router and nine blower fans. In order to extinguish the fire, police officers and firefighters had to break into the house. An electricity short-circuit was ruled as the cause of the fire/explosion.

The police stated that the electricity that was used to mine Bitcoin was connected illegally and didn’t have any prior authorization. After the event, the Malaysian government recognized the need to combat illegal mining.

One of the solutions includes close cooperation with energy companies to detect abnormal electricity usage in every part of the country. However, this move isn’t as effective as once thought because miners have started using advanced technological tools to bypass any form of detection.

Bitcoin Mining Isn’t Illegal in Malaysia

In recent years, Malaysia has reported major financial losses due to illegal crypto mining activities. Some reports state that since 2018, the country has lost more than $718 million. One of the biggest concerns regarding these activities is the fear that they may have a negative effect on the power supply of the whole country.

The most interesting part here is the fact that Bitcoin mining as an activity isn’t illegal in Malaysia. However, connecting electricity without authorization is. Considering the fact that Bitcoin mining takes a lot of electricity, miners are no strangers to connecting to power supplies without a green light from authorities and using it to make themselves richer.