Explosion in Bandar Puncak Alam, Malaysia revealed illegal Bitcoin mining operation with 9 mining rigs running on stolen electricity
Fire started at 11:41 AM and was extinguished by 4:45 PM, leading to discovery of modified circuitry and unauthorized power connections
Malaysian authorities have dealt with similar cases, including a recent $3M electricity theft in Thailand involving 1,000 mining machines
Previous crackdown in Miri, Sarawak led to destruction of 1,069 mining rigs after $2M in electricity theft
Malaysian authorities discovered an illegal Bitcoin mining operation following an explosion and fire at an empty house in Bandar Puncak Alam on Tuesday, February 13, 2025.
The incident adds to a growing list of unauthorized crypto mining operations across Southeast Asia.
The discovery came after a local resident reported an explosion and smoke coming from a house along Lorong Cekara Purnama at 11:41 AM. Fourteen volunteer firefighters from Saujana Utama and Bestari Jaya responded to the emergency call.
Sungai Buloh district police chief Supt Mohd Hafiz Muhammad Nor reported that emergency responders had to break into the uninhabited house, where they found the fire originated from a room with modified electrical circuitry that had shorted.
After extinguishing the fire at 4:45 PM, a joint investigation team consisting of police and Tenaga Nasional Berhad (TNB) personnel inspected the property. They uncovered nine Bitcoin mining rigs, nine blower fans, and a D-link router, all connected to an illegal power supply.
The operation violated Section 37 of Malaysia’s Electricity Supply Act, which prohibits tampering with power supply lines. Offenders can face fines up to 100,000 Malaysian ringgit ($23,700) and imprisonment for up to five years.
Police have opened an investigation under Section 427 of the Penal Code and Section 37(1) of the Electricity Supply Act 1990. Authorities are currently seeking information that could lead to arrests, with Assistant Investigating Officer Mohamad Nurizwan Hafiz Abd Halim managing the case.
The incident follows a pattern of similar cases across Southeast Asia. In Thailand last month, authorities uncovered a mining operation in Chonburi that had stolen approximately $3 million worth of electricity, using over 1,000 mining machines.
Other Illegal Mining Operations
Malaysia’s history with illegal crypto mining operations includes a major case in Miri, Sarawak, where miners allegedly stole $2 million worth of electricity from the local energy provider. That case resulted in the confiscation of over 1,000 Bitcoin mining rigs.
The seized equipment in Miri was destroyed by authorities using a steamroller, highlighting the strong stance taken against unauthorized mining operations. The destruction included 1,069 mining rigs seized in a joint operation with Sarawak Energy.
Ibu Pejabat Polis Daerah (IPD) Perak tengah melupuskan 985 peralatan yang digunakan dalam kegiatan perlombongan Bitcoin dianggarkan bernilai RM1.98, pada Isnin.#IPDPerak #Lupus #bitcoin
Video: Amirrul Rabbani Rashid pic.twitter.com/kEgdqTopCH
— Malaysia Gazette (@MalaysiaGazette) August 19, 2024
According to estimates, Malaysia has lost approximately $750 million to illegal mining activities between 2018 and 2023. These operations often target the nation’s electricity infrastructure, creating an ongoing challenge for law enforcement.
The rise in illegal mining operations correlates with Bitcoin’s increasing value, which reached $97,000. This price increase has made mining more profitable, despite the high energy costs involved.
In response to the Bandar Puncak Alam incident, authorities have urged citizens with relevant information to contact their nearest police station. The investigation continues as part of Malaysia’s broader efforts to combat unauthorized crypto mining operations.
