4 cryptocurrency mining operators in Miri caught stealing electricity

Cryptocurrency mining servers at the raided premises.

KUCHING, April 1: Four operators were caught stealing electricity to mine cryptocurrency at four different premises located at Taman Tunku, Lopeng and Jalan Miri Bypass Industrial Park in Miri recently.

According to a statement, they were caught during a two-day joint executive action by Sarawak Energy Berhad (Sarawak Energy), the Enforcement and Legal Division of the Ministry of Utilities and the police.

At the same time, three suspects were arrested by the police and a total of 300 cryptocurrency mining machines were confiscated from all four raided premises.


The three detained suspects were charged in court for theft following a police report lodged and the premises owners will be called in to assist with investigations under Section 33(5) of the Electricity Ordinance.

According to Sarawak Energy, in a press release today, the team had conducted close surveillance on the operators following public tip-offs prior to the joint operation.

During the raid, it was discovered that all the premises stole electricity through illegal connections from the incoming main wiring which bypassed the meters. The wiring was done without proper insulation and exposed which was a safety hazard.

Load readings taken on site showed that the operators should be paying between RM75,000 to RM80,000 per month instead of RM200 per month as cryptocurrency mining consumes high amounts of electricity to run 24 hours a day and to cool the machines.

All tampered wiring and meters were dismantled and seized as evidence of power theft.

Miri police seizing cryptocurrency miners during the raid.

Sarawak Energy warned that stealing electricity is a criminal offence which carries a penalty of up to RM100,000 and/or five-year jail term.

Earlier this year, five cryptocurrency mining operators in Miri were caught for power theft and these cases are still under police investigation.

Despite the constant advisories on this illegal and dangerous act, Sarawak Energy continues to uncover more power theft cases involving cryptocurrency mining operators who are tapping supply through unsafe wirings.

In the last three years, Sarawak Energy said that there were more than 110 cases of power theft by cryptocurrency mining operators, tapping supply directly from the mains wiring bypassing electricity meters.

These unsafe wiring connections, the utility company warned, pose a serious safety risk to the occupants and public as it can cause electrical fire and electrocution.

Sarawak Energy explained that cryptocurrency mining operations require extensive amounts of electricity, compounded by high cooling requirements due to heat generated by the equipment used.

It added that these energy intensive operations run non-stop, and the combination of poor ventilation and unsafe tampered wiring can easily cause fires.

Exposed wires from the illegal connection (copper coloured) pose a risk of fire and electrocution.

Since most cryptocurrency mining centres are operating on rented premises, Sarawak Energy advised landlords to be on alert about their tenantsā€™ activities constantly to avoid being implicated in any power thefts committed by tenants on rented premises.

Customers are also reminded not to trust any service provider claiming to be able to reduce electricity use or allow premises owner to enjoy unlimited usage of electricity through meter tampering.

Sarawak Energy will continue to carry out meter inspection activities throughout Sarawak actively with the assistance of all relevant authorities including the Ministry of Utilities and the police.

Members of the public may report any suspicious activities related to power theft and service providers claiming to be able to reduce electricity consumption. They may do so by contacting Sarawak Energyā€™s customer care centre at 1300-88-3111 or email at customercare@sarawakenergy.com. All information will be kept strictly confidential. ā€” DayakDaily