Authorities in Miri, a town on the diverse island of Borneo, recently closed down an unlawful cryptocurrency mining operation. This bold move came in response to information received from vigilant local citizens. The illicit operation was equipped with high-value technical apparatus, all confiscated during the raid.
Seizure of Illegal Cryptocurrency Mining Equipment
Local media, notably The Borneo Post, reported the significant involvement of Sarawak Energy in unearthing this unauthorized venture. The operation was discovered to encompass 34 cryptocurrency mining servers powered by illicitly acquired electricity through cable tapping.
The officers in charge promptly apprehended all equipment instrumental to the illegal operation. The confiscated goods comprised servers and tapped cables, integral components in this covert mining operation. Local law enforcement has since assumed control of the investigation. It adds another chapter to the growing saga of rogue mining operations unearthed on the island.
The Scale of Electricity Theft
Upon evaluation, Sarawak Energy conjectured that the mining operation was siphoning off approximately 6,000 Malaysian ringgits per month (equivalent to $1,300) in the form of stolen electricity. Despite Sarawak boasting some of Malaysia’s most economical energy rates, electricity theft is an ongoing issue further complicated by the crypto-mining underworld.
In 2023, acting on another public revelation, the state authorities in Senadin, where Miri is based, seized an additional 137 cryptocurrency mining servers.
Bitcoin miners are currently braving a prolonged bear market, leading to substantial stress on several operations. Consequently, there has been a notable trend of mining companies and operators liquidating their Bitcoin holdings in unprecedented quantities over recent months.
Record-breaking Network Metrics Amid Rising Difficulties
In 2023, the Bitcoin mining ecosystem witnessed numerous significant statistical milestones. For instance, the network’s hash rate reached its zenith, mirroring the highs of network difficulty.
Generally, this suggests that the Bitcoin network is demonstrating unmatched resilience. An all-time high number of miners are vying for block rewards while bolstering network security. However, it also imposes additional pressure on smaller players who cannot leverage the scale benefits larger entities enjoy.
Lastly, operators with access to cheaper electricity rates have a clear advantage, demonstrating greater profitability potential. This incentive system further fuels the rogue mining operators’ tendency to commit electricity theft.
By eliminating the electrical expenditure associated with mining, these illegal players can maximize their profits and rapidly offset hardware costs. That adds another layer of complexity to the already intricate digital currency world.
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