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July 19, 2021 @ 11:19 +03:00
Call it a crypto crackdown — literally. Malaysian authorities seized 1,069 bitcoin mining rigs, laid them out in a parking lot at police headquarters, and used a steamroller to crush them, as part of a joint operation between law enforcement in the city of Miri and electric utility Sarawak Energy.
Assistant Commissioner of Police Hakemal Hawari told CNBC the crackdown came after miners allegedly stole $2 million worth of electricity siphoned from Sarawak Energy power lines. A video of the event posted last week by local Sarawak news outlet Dayak Daily has since gone viral on social media.
Acting on a tip, authorities on the island of Borneo confiscated the rigs in six separate raids between February and April. In total, police destroyed about $1.26 million of mining equipment. Police opted to crush the mining gear rather than sell it, in accordance with a court order. Other countries, like China, have taken a different route, reportedly auctioning off seized rigs.
While mining for cryptocurrencies is not illegal in Malaysia, there are stringent laws around power use. Section 37 of Malaysia’s Electricity Supply Act threatens those who tamper with power lines with fines of up to 100,000 Malaysian ringgit ($23,700) and five years in prison. The Cambridge Center for Alternative Finance estimates that Malaysia accounts for 3.44% of all the world’s bitcoin miners, placing it in the top ten mining destinations on the planet.
Viral video shows Malaysian police destroying 1,069 bitcoin mining rigs with a steamroller, CNBC, Jul 19