The burgeoning crypto mining industry can sometimes become a double-edged sword, as observed in the state of Sarawak, Malaysia. Recently, two illegal crypto mining operations were uncovered in residential areas of the state, leading to recurrent power disruptions, creating an issue for locals. These illegal operations had a significant impact on Sarawak Energy, the state’s electric utility firm, creating an overload on the energy lines, which has not gone unnoticed or uncorrected.
Investigations into the matter revealed that 74 units of cryptocurrency mining servers involved in these stealthy operations were connected to direct tapping cables, all of which were operating without authorization. This reckless maneuver, while elevating crypto mining operations, presented a significant risk including, but not limited to, short circuits, fires, and appliance damage. The grim fact is that this risk could ultimately culminate in loss of life.
The line between entrepreneurship and lawbreaking can be thin in this situation. Take, for instance, the economic setback endured by Sarawak Energy. The utility firm reported a monthly loss of more than 16,000 Malaysian Ringgit ($3,400), sustained due to the unrecorded consumption by these illegal operations. And we are reminded of the age-old adage: short-term gains can often lead to long-term pains.
The authorities are not standing by passively, however. Sarawak Energy has been actively collaborating with the Ministry of Utility and Telecommunication Sarawak, the police force, and the Malaysian Anti-Corruption Commission (MACC) to devise consuming new electricity theft detection methods. It’s a progressive step towards curbing reckless crypto mining operations that function outside the legal framework and create substantial risks to the public and the state.
Yet, it’s also worth noting that illegal mining operations aren’t isolated cases peculiar to Sarawak. Just a few months prior, in June, another clandestine miner was apprehended for pilfering electricity to power crypto mining activities in Miri, a town in the state.
While the technological advancement encapsulated with crypto mining offers a promising frontier for businesses and individuals, the act of veering into unauthorized activities not only tarnishes the integrity of this emerging enterprise but also poses safety threats. Sarawak Energy’s stern warning to potential electricity thieves only reiterates the importance of operating within the legal boundaries, not least for ensuring one’s safety and the safety of their neighbors. In the end, mishandling this burgeoning segment of technology can lead to dire repercussions, not just for the involved individuals, but the broader community.
Source: Cryptonews
