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Market Haven’s Michael Grey Discusses Malaysian Energy Supplier Discovers Illegal Crypto Mining Operation

Market Haven’s Michael Grey Discusses Malaysian Energy Supplier Discovers Illegal Crypto Mining Operation

Market Haven Senior Account Manager Michael Grey talks about how a group was running an illegal crypto mining operation in Borneo using stolen power. Recently, a Malaysia-based energy supplier found out that an illegal crypto-mining group was taking away power from the electric grid on the island of Borneo.  

Borneo, an island nation located in Southeast Asia’s Malay Archipelago, is shared by Indonesian Kalimantan, Malaysian states Sabah and Sarawak, and the nation of Brunei. The operation was taking place in the town of Miri, where local authorities cracked down on the group’s illegal activities. After receiving a tip from the public, the police made their way to the location and seized equipment as well.  

Public Tips Off Authorities About Illegal Operations 

Based on comments from Borneo Post, a local news outlet, the mining group’s activities were uncovered by Sarawak Energy. The group had been using 34 crypto-mining services, all of which were powered through stolen power. The people in charge of the operation tapped into the grid to steal the electricity needed to run the machines.  

When busting the mining operation, authorities seized all the equipment they used, which included tapping cables and servers. At the moment, local police officials are investigating the details of the last mining operation to have been shut down on Borneo Island.  

Illegal Crypto Mining Operation Stole RM6,000 Worth of Power  

Estimations by Sarawak Energy, the state-owned electric utility company for the Malaysian state of Sarawak, show that the group was using around RM6,000 worth of stolen power. That’s about $1,300. The utility company later made an announcement, noting that despite offering some of the lowest energy prices in the country, power theft is common.  

A few months ago, a member of the public tipped off local police about a mining operation taking place illegally in the area. At the time, the authorities from the state of Senadin seized more than 137 crypto-mining servers.  

Crypto Mining Rates Drop As Investors Weather Massive Bear Market 

Based on other crypto news outlets, Bitcoin miners are weathering a turbulent bear market that has strained various operations. Consequently, it has caused numerous mining companies and operators to sell off their Bitcoin. Statistics show that they’ve sold off a record number of Bitcoin tokens over the last few months.  

At the same time, the Bitcoin mining ecosystem has determined a few core metrics. For instance, the network hash rate reached an all-time high level this year. But this correlates with increasing highs for network difficulty.  

According to Market Haven’s Michael Grey, crypto mining is a lucrative method for crypto enthusiasts to take advantage of the industry without simply purchasing a token. But the harsh regulations of Malaysia’s Securities Commission make it difficult for companies to start operations here.  

It’s quite possible that rolling out balanced regulations for crypto mining operations could help diversify the crypto sector by offering a varied range of opportunities. But in doing so, regulators will have to keep track of which operations are following the rules and which ones aren’t. 

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