Crypto miners keep stealing from this state power company

If found guilty of stealing power, those involved could face a maximum prison sentence of five years, plus fines

article-image

Mark Agnor/Shutterstock modified by Blockworks

share

Crypto mining is extremely competitive, and the winning edge usually comes down to access to cheap electricity. Some miners in Malaysia are hellbent on finding energy so cheap that it’s free.

Sarawak Energy, one of Malaysia’s state-owned electric companies, is accusing cryptocurrency miners of persistently stealing electricity to power their rigs and has pledged to root out thieves.

In a recent joint operation with police, Sarawak Energy busted two mining outfits supposedly stealing 30,000 Malaysian ringgits (about $6,500) worth of electricity per month. The utility company also claimed these two mining operations were in cahoots and run by the same person or entity.

All up, 120 machines, direct tapping cables and other electronic gadgets were seized as evidence for the investigation, local outlet Malaymail reported

Which cryptocurrency was being mined wasn’t disclosed, but bitcoin (BTC) remains the most popular among mining operations after Ethereum switched to proof-of-stake last year.

The energy company explained how those who divert electricity illegally attempt to get away with it by fraudulently altering devices. They tamper with electricity meters, produce fake meter covers and tap into power lines that are underground.

“To mitigate the high operational costs, cryptocurrency miners often resort to non-standard installations that can overload the electrical system,” Sarawak Energy said in a statement, “This poses increased risks of short circuits, appliance damage, fires and potential loss of life.”

Stealing electricity to mine bitcoin can lead to prison

Bitcoin mining does have extremely high costs associated with it, particularly electricity. The extent of profits taken is highly dependent on the price of bitcoin.

Bitcoin has gone on quite a ride since its nearly $69,000 all time high in November 2021. Now bitcoin trades for less than half that — even after almost doubling year to date — putting pressure on miners with tight operating margins and expensive debt.

For plucky Malaysia-based crypto miners caught stealing electricity to remain profitable, the penalties are stiff.

Sarawak Energy quoted an electricity ordinance that says if someone is found guilty of stealing power, they could be sent to prison for a maximum of five years and/or pay a fine of 100,000 ringgits (about $21,400). 

Stealing electricity to mine crypto is practically a worldwide phenomenon. In one instance, a man in England stole about $44,000 worth of electricity to run his mining machines and in 2021 was sentenced to one year in prison.

Local to the United States, a former employee of a Massachusetts school allegedly set up a mining operation in the crawl space of the school near the end of 2021. Court documents accused the man of stealing over $17,000 worth of electricity.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

P2P Foundation founder Michel Bauwens revealed this week that Satoshi wrote him over email in the early days of Bitcoin

article-image

A Blockworks Research report looked at how Hyperliquid has maintained its hype and how it can build out its businesses

article-image

Dragonfly’s Rob Hadick discussed how the firm is approaching investments in the current market

article-image

The asset surged over the past seven days to reach its highest-ever weekly close on the SOL/ETH pair

article-image

Industry watchers note that SOL ETFs have attracted a fraction of the demand for bitcoin and ether ETFs

article-image

Tariff swings impact stock market and company outlooks, with Apple and NVidia likely to be affected by China tariffs