Terengganu police and TNB dismantle bitcoin mining syndicate, seize 45 machines

The joint operation, codenamed Op Letrik, targeted two premises — one in Bukit Perpat, Hulu Terengganu, and another in Wakar Tapai, Marang — where authorities confiscated mining equipment and related devices

Terengganu police and Tenaga Nasional Berhad (TNB) have shut down a syndicate allegedly involved in stealing electricity to power illegal bitcoin mining activities in Hulu Terengganu and Marang districts. The operation on Tuesday, codenamed Op Letrik, saw the seizure of 45 bitcoin mining machines valued at RM225,000.

The joint effort targeted two premises—one in Bukit Perpat, Hulu Terengganu, and another in Wakar Tapai, Marang—where police and TNB personnel confiscated mining equipment and related devices, reports Malay Mail, which first broke the news.

The raids were carried out with the assistance of TNB’s Special Engagement Against Losses (SEAL) unit in a move to curtail revenue losses to the utility provider.

The syndicate is said to have been operating from residential and commercial properties, illegally diverting electricity to avoid detection and enabling 24/7 bitcoin mining.

The stolen power is estimated to cost TNB around RM36,000 per month, contributing to the utility provider’s non-technical losses.

No immediate arrests were made during the operation, and all seized items—including wiring tools, modified meters, and bitcoin mining machines—were brought to the district police headquarters for further examination.

Authorities are now focused on identifying and contacting the owners of the two premises, aiming to glean more information about the syndicate’s activities.

The case is being probed under Sections 379 (theft) and 427 (mischief) of the Penal Code, as well as Section 37 of the Electricity Supply Act 1990.

Those found guilty of these offenses could face up to five years’ imprisonment, a fine exceeding RM100,000, or both.

Members of the public are urged to report any suspicious activity to the police or TNB.

Highlighting the dangers of electricity theft, Datuk Mohd Khairi Khairuddin, the Terengganu police chief, stated that such actions could compromise public safety and the stability of essential infrastructure.

In a separate report by Free Malaysia Today, TNB is said to be stepping up its efforts to detect and deter power theft, which has become increasingly prevalent.

The report notes that TNB is planning to install smart meters at all residential properties by 2024, which will help to monitor and detect any irregularities in electricity usage.

TNB is also increasing its surveillance activities, and is working closely with the police to identify and arrest those who are involved in power theft.

In 2022 alone, TNB detected a total of 12,797 cases of power theft, which resulted in an estimated loss of revenue to the utility provider. The true scope of the issue is likely even broader, given that these figures only account for cases that were detected by TNB.

According to Statista, the total amount of bitcoin mined in 2023 is estimated to be 998,128 coins. At an average price of $52,000 per bitcoin at the time of writing, the total value of bitcoin mined in 2023 is estimated to be around $51,900,000,000.

The report adds that bitcoin mining is a legal activity in most countries. However, there are a few countries where bitcoin mining is illegal, such as China and Vietnam.

In Southeast Asia, several cases of bitcoin mining scams have been reported in recent years. These scams typically involve promising investors high returns on their investments in bitcoin mining, but then siphoning off the funds.

Earlier this year, two men in Malaysia were charged with cheating two women out of a total of $3.6 million in a bitcoin mining scam. The two women were reportedly induced to invest in a bitcoin mining scheme that was said to guarantee a 15% return on investment within one month. However, the men are alleged to have used the money for their own purposes and never engaged in any bitcoin mining activities.

Bitcoin mining is a process that involves solving complex mathematical problems in order to add new transactions to the bitcoin blockchain. This process is extremely energy-intensive and requires specialized hardware, known as ASIC miners.

ASIC miners are capable of performing trillions of hashes per second, which is the unit of measurement for computational power. The higher the hash rate, the faster the miner can solve mathematical problems and earn bitcoins.

In order to maximize their earnings, bitcoin miners are constantly searching for ways to improve their efficiency and reduce their energy consumption. Some common strategies include using renewable energy sources, such as solar or wind power, and optimizing the configuration of their mining rigs.

Bitcoin mining is a competitive industry, and miners are constantly vying for the best coins and the highest payouts. As the price of bitcoin fluctuates, so too does the profitability of bitcoin mining.

In periods of high price volatility, it can be difficult