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KUCHING: A total of 104 cryptocurrency mining operators have been caught stealing electricity over the past three years.
In this regard, Sarawak Energy Bhd (SEB) said many were found to be operating without having any electricity meter, in that they had been tapping power supply directly from the mains wiring in an unsafe manner.
“These unsafe wirings pose dangers to the public as they can cause fires and also electrocution,” the state-owned power utility company said in a statement.
According to SEB, unregistered electricity consumption – namely, one that bypasses the meter – is classified as stealing electricity as the rate of consumption is not being registered at all.
It warned that such action was a criminal offence under Section 33(5) of the Electricity Ordinance which, upon conviction, provides a penalty of up to RM100,000 and/or five years in prison.
“Cryptocurrency mining operations require an extensive amount of electricity supply, compounded by high cooling requirements due to the high amount of heat generated,” said SEB, adding that such energy-intensive operation would run for 24 hours and the combination of poor ventilation and unsafe tampered wirings could easily cause fires.
It stated that an investigation on a fire, which broke out in an unoccupied shophouse at Jalan Luak Bay in Miri on Feb 25, had shown several charred cryptocurrency servers at the site.
“Illegal wirings concealed inside the wall were also burnt. A police report had been lodged and SEB would be calling the owner of the premises to assist in the investigation.”
The corporation also said 759 units of illegally-connected cryptocurrency mining servers had been discovered at five different premises in Assar Commercial Centre during a raid early February, which was jointly conducted with Miri District police.
Last year, SEB said illegal electricity connections were detected at two unoccupied houses said to be used for cryptocurrency mining – one at Happy Garden in Bintulu and the other at Senadin in Miri – after both units were destroyed in fires.
“Although no life was lost in both incidents, three firefighters despatched to the Senadin site were at risk of electrocution as the (power) supply to the house was still live due to direct tapping to the mains wiring,” it said, adding that its technical team was called to the scene to disconnect the power to ensure the safety of the firefighters who were carrying out their duties.
Additionally, SEB said electricity thefts linked to cryptocurrency mining at rented houses in Pujut, Miri, had also led to nine power interruptions affecting the surrounding areas in April last year.
Investigations had shown that all nine operators had tampered with the wirings at their respective premises and had their supply coming in by-passing the meter.
SEB said as the majority of cryptocurrency mining centres were operating on rented premises, it cautioned the property owners or landlords that they would also be liable for the crime, especially if the electricity meters were registered under their names.
“Following numerous incidents where legal action had been taken against the tenants for power theft activities, we advise landlords to keep an eye on their tenants to avoid legal action being taken against
them.”
SEB’s ongoing public awareness campaign had encouraged more members of the public to come forward and report suspicious activities related to electricity supply usage.
“This, in turn, has helped us detect many power theft cases and subsequently, seize the illegal wiring and disconnect the supply to ensure public safety.”
SEB said since 2018, it had filed 104 investigation papers on cryptocurrency mining premises involved in power theft, with Kuching reporting 42 cases, Miri with 59 cases, Sibu with six cases, and Bintulu with two cases.
Last year alone, it said the cases filed stood at eight in Kuching, nine in Miri, six in Sibu, and two in Bintulu.
“We will continue to carry out meter inspection activities throughout Sarawak and work closely with the relevant authorities, especially the Ministry of Utilities of Sarawak and the police.”
To report any incident of power theft, including the details of power-theft service providers, reach out to SEB Customer Care Centre via 1-300-88-3111, or via [email protected]
All information would be kept strictly confidential.
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