Malaysia records the highest case of illegal Bitcoin mining

• Bitcoin mining operations are highly being illegally operated in Malaysia
• In 2021, Malaysian authorities seized about $12.9 million worth of illegal BTC mining machines
• The bulk of the mining operations was taking place in Selangor, Kuala Lumpur, Perak, and Penang
• To curb illegal Bitcoin mining operations, Malaysian CID is utilizing drones to detect heat patterns and monitor unusual electricity consumption

Bitcoin mining has become more profitable as the asset price continues to surge with notable adoption. The leading digital asset, BTC, has witnessed considerable attention amid the global pandemic and has seen several new highs. Following the significant gains generated through mining processes, more firms are competing to win the hash race and acquire more rigs. Simultaneously, several miners are acquiring illegal machines to continue their operations. Malaysia is one of the nations that has recorded the highest number of cases that relates to illegal BTC mining over the past year.

Malaysian CID seized illegal Bitcoin mining operations

Malay Mail, a local Malaysian news outlet, has recently published a report citing the illegal Bitcoin mining machines case. According to the report, the Malaysian Bukit Aman Criminal Investigation Department (CID) has revealed that the agency seized illegal BTC equipment worth RM54 million, which is about $12.9 million in the last year.

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Notably, while comparing the illegal machines’ confiscation with 2020, it is observed that the count has surged by more than 4,185%.

Following the seizure, Datuk Seri Abd Jalil Hassan, CID’s head, cited that the authorities have opened about 570 investigations and arrested 528 individuals concerning illegal cryptocurrency mining.

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Indeed, in 2020, investigations stood at 20 from 26 arrests. The agency also observed that the culprits were mostly aged between 18 to 30 years with a bulk of mining operations. 

Moreover, the bulk of the mining operations was taking place in Selangor, Kuala Lumpur, Perak, and Penang. According to the CID, these regions are attractive because of the constant power supply, with perpetrators using the industrial status to mask their activities.

How does Malaysia curb such operations?

Malaysian CID utilizes drones to detect heat patterns and monitor unusual electricity consumption to curb illegal Bitcoin mining operations. Overall, the authorities intensified the crackdown on illegal mining activities last year. Ultimately, the scenario resulted in seizing an enormous count of mining equipment.

Read More: 4 factors to consider when choosing an industrial-scale Bitcoin mining location

Spike in ransomware and Ponzi schemes

While noting the case of illegal Bitcoin mining operations, the Malaysian agency also identified a spike in ransomware and Ponzi schemes related to digital assets. Notably, the losses following these illicit activities have mirrored the global trend wherein 2021 and global cryptocurrency crime recorded a loss of $14 billion. Indeed, the figure has grown by more than 79% since 2020.