Borneo authorities seize illegal crypto miners running off stolen power

Authorities in the town of Miri on the island of Borneo shut down an unlawful cryptocurrency mining operation and took devices following a tip-off from the public.According to regional news outlet The Borneo Post, Sarawak Energy found the operation, which consisted of 34 cryptocurrency mining servers operating utilizing taken electrical energy through cable television tapping.Authorities seized all of the devices used in the operation, consisting of servers and tapping cables, while local cops are now examining the current mining operation to be taken down on the island.Cryptocurrency mining servers discovered at a shophouse in Marina Square, Miri. Source: The Borneo PostSarawak Energy approximated that the operation was utilizing around 6,000 Malaysian ringgits a month ($ 1300) worth of stolen electrical energy. An announcement from the energy noted that although Sarawak offers some of the most affordable energy costs in Malaysia, energy theft stays an issue.Another public tip-off in 2023 saw over 137 cryptocurrency mining servers taken by authorities in the state of Senadin, where Miri lies. Related: Bitcoin block 800,000 mined– Whats next?As Cointelegraph just recently reported, Bitcoin (BTC) miners continue to weather an extended bearishness that has put numerous operations under strain. This, in turn, has resulted in a number of mining companies and operators selling BTC in record quantities over the previous few months.The Bitcoin mining ecosystem has actually also recorded a number of essential metrics, with the network hash rate hitting all-time highs in 2023, referring highs for network difficulty.While this typically suggests that the Bitcoin network is at its most resilient, with a record variety of miners competing for block rewards while securing the network, it also positions pressure on smaller sized operators that do not have the economies of scale of bigger operations.Furthermore, operators with lower electrical energy prices also stand to be more rewarding, which is another driving element behind the tendency for illegal mining operators to steal electrical energy from the grid. This gets rid of the electricity running expenses of mining, enabling unlawful operators to bank profits and settle hardware costs.Collect this article as an NFT to maintain this minute in history and show your support for independent journalism in the crypto space.Magazine: Bitcoin is on a crash course with Net Zero pledges

Other Questions People Ask

What actions did Borneo authorities take against illegal crypto miners running off stolen power?

Borneo authorities in Miri shut down an illegal cryptocurrency mining operation after receiving a public tip-off. They seized 34 cryptocurrency mining servers and the equipment used for cable tapping, which was responsible for stealing electricity. This crackdown highlights the ongoing issue of energy theft in the region, despite Sarawak's low energy costs.

How much electricity were the illegal crypto miners in Borneo stealing?

The illegal cryptocurrency mining operation in Miri was estimated to be using around 6,000 Malaysian ringgits worth of stolen electricity each month, which is approximately $1,300. This significant amount of energy theft not only impacts local utilities but also raises concerns about the sustainability of cryptocurrency mining practices in the area. Authorities are now investigating further to prevent similar operations from occurring.

What prompted the seizure of illegal crypto mining equipment in Borneo?

The seizure of illegal crypto mining equipment in Borneo was prompted by a tip-off from the public, indicating community involvement in reporting unlawful activities. This operation was discovered by Sarawak Energy, which has been actively monitoring energy theft cases. The swift action taken by local authorities underscores the importance of public vigilance in combating illegal mining operations.

What are the implications of illegal crypto mining on local energy resources in Borneo?

Illegal crypto mining operations, like the one recently shut down in Borneo, strain local energy resources and contribute to financial losses for utility companies. Such operations exploit low energy costs by stealing electricity, which undermines the integrity of the energy grid. This situation not only affects the profitability of legitimate miners but also poses challenges for energy sustainability in the region.

What trends are emerging in cryptocurrency mining following the crackdown on illegal operations in Borneo?

The crackdown on illegal crypto miners in Borneo reflects a broader trend where authorities are increasingly targeting unlawful operations amid a challenging market for legitimate miners. As Bitcoin miners face extended bearish conditions, many are struggling to remain profitable, leading to heightened scrutiny of energy usage and operational practices. The situation emphasizes the need for compliance with regulations to ensure a fair and sustainable mining environment.