Police Destroy 1,069 Bitcoin Miners With Steamroller In Malaysia

[Hydrogen]

As Bitcoin’s price surged this spring to a new all-time high, the spotlight shining on its controversial mining process only got brighter. Bitcoin, Ethereum, and many other cryptocurrencies use an energy-intensive “proof-of-work” process that makes computers on its decentralized network compete to solve complex mathematical equations to verify a batch of transactions; this makes the network less susceptible to certain attacks, and earns miners crypto rewards.

Given the competitive element in the quest for valuable cryptocurrency, powerful mining rigs—essentially, PCs purpose-built to maximize mining rewards—are the preferred tool of serious crypto miners. They are expensive, and persistent demand and manufacturing delays can mean months-long waits for rigs to be delivered. This week, police in Malaysia crushed 1,069 of them with a steamroller.

Authorities in the city of Miri in Sarawak, Malaysia seized 1,069 rigs from miners alleged to have stolen electricity for their operations, per a report from local publication The Star. The devices were seized in a joint operation between Miri police and Sarawak Energy Berhad between February and April, and have an estimated value of RM5.3 million ($1.25 million USD), according to the outlet.

Six individuals were arrested for electricity theft in the operation, and “have been fined up to RM8,000 and jailed for up to eight months," according to a statement from Miri police chief ACP Hakemal Hawari that was quoted by The Star. Local Sarawak news outlet Dayak Daily adds that the rigs were collected over the course of six separate raids. Sarawak Energy Berhad estimates that it lost RM8.4 million ($2 million USD) in energy that was stolen from its lines for the mining operation, the outlet reported. Dayak Daily also uploaded a video to YouTube showing the miners being steamrolled.


Neither outlet stated why the police felt it was necessary to destroy the machines in such dramatic fashion, though it certainly sends a strong message. Electricity theft is a persistent issue in numerous regions where Bitcoin is mined, as some operators use illegal means to secure the cheap electricity necessary to make a big profit mining cryptocurrency.

"The electricity theft for mining Bitcoin activities has caused frequent power outages, and in 2021, three houses were razed due to illegal electricity supply connections," The Star quotes  Hawari as saying.

According to the report, the mining rigs were demolished in the parking lot of the Miri district police headquarters this week, as seen in the video above. Bitcoin enthusiasts might watch the video and see dreams of prospective crypto wealth crushed to bits, while anti-mining advocates are likely to see Bitcoin’s ecological impact being slightly curtailed amidst all of that e-waste.

Bitcoin’s distributed ledger design ensures the security and stability of the blockchain network, but the mining model requires exorbitant amounts of energy. Digiconomist estimates that the Bitcoin network now uses as much energy annually as the entire county of Sweden, and the energy use of the network is sure to rise as more mining power is added to the network (and vice versa).

The leading cryptocurrency’s early-year surge was halted in part by Tesla announcing in May that it would no longer accept Bitcoin payments, citing concerns over the use of fossil fuels in mining. It was an about-face for the electric car maker, which announced in February that it had purchased  $1.5 billion worth of Bitcoin to hold on its balance sheet, and soon after began accepting Bitcoin payments for a brief span.

Tesla CEO Elon Musk, the terminally-online Dogecoin memer, has since become reviled by many crypto enthusiasts for his perceived meddling in the scene, including the formation of a “Bitcoin Mining Council.” Bitcoin’s price fell swiftly following Tesla’s announcement, and at a current price just above $32,000 per coin, it’s worth about half of its all-time high set in April.

China’s increasing crackdown on cryptocurrency has also recently dampened enthusiasm around the industry. Crypto mining has been banned in multiple provinces, causing the Bitcoin network’s hash rate (or total computational power) to sink as miners shut down or move abroad. The People’s Bank of China also told top banks and payments services to root out cryptocurrency users and implement stricter know-your-customer processes.

Earlier this week, the Ukrainian Security Service (SBU) similarly busted a crypto mining operation for allegedly stealing electricity from a nearby regional energy provider. That bust had its own unique hook: some 3,800 PlayStation 4 consoles made up the majority of the seized devices, as the systems had apparently been modified to mine an unidentified cryptocurrency. Game consoles are significantly less powerful than dedicated PC mining rigs, but there’s still potential for profit when the energy cost is zero.

https://www.vice.com/en/article/7kv739/police-destroy-1069-bitcoin-miners-with-big-ass-steamroller-in-malaysia

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Video of incident:  https://www.youtube.com/watch?v=c_tcg9kOfkg

Is it fair to say a political statement is being made here? Malaysia is doing this as a gesture of appeasement towards china's hard anti bitcoin stance.

Initially, china banned crypto mining. Many miners relocated their equipment to other countries, or sold them online. The evolution of this process is malaysia now destroying mining units to prevent them from being relocated or sold.

Is there a legitimate motive for outright destroying mining units. Rather than auctioning or selling them. Aside from politics?

[GreatArkansas]

I saw this video recently on Twitter and some users claiming it's on China, really FUD and fake news, lol.
This is another crime that some governments will start to become strict with cryptocurrency, but for me, Bitcoin got nothing to do with it, people are.

In some country too they are destroying some items that are involved with crime, one of the example are smuggled items, like cars. They are destroying them in public, so in this case, it was almost the same case, doing publicity.

[hatshepsut93]

Is it fair to say a political statement is being made here? Malaysia is doing this as a gesture of appeasement towards china's hard anti bitcoin stance.

I doubt that. Bitcoin isn't politically significant, that would be a quite useless and noncommittal move. They didn't want to auction the miners, because they could again create the same problem of electrical outages and electricity stealing.

[sheenshane]

Is crypto banned in Malaysia?

If miners doing it illegally and stealing electricity or any illegal activity that against their country just to continue mining, that deserves to be them seizing their mining rigs or mining equipment and being destroyed, I remember this the same case here in my country when there's a backdoor or smuggled cigarette that being seized they destroy them all so that didn't use anymore.

We might do mining without stealing electricity and might we're fine if crypto doesn't ban in our country.

[Wexnident]

Kind of a waste tbh. They could've used it themselves or something instead of just, well, doing this. It's an absolute waste of resources and destroying them brings no benefit to any side. Even if we consider it from a political stance, it doesn't seem like it actually has any result at all? Not to mention that it isn't strictly Bitcoin their blaming but rather the illegal stealing of energy/electricity that the mining rigs no? Simply speaking, it's them enforcing the law.

Still looks quite a waste to me though.

[Yaunfitda]

As far as Asian politics go, I don't think that Malaysia did this to appeased China.

Remember that Malaysia is one country that has territorial claims in the South China Sea, and recently they have summoned China's ambassador after they violated Malaysia's airspace.

Malaysia says it is to summon China's ambassador after 16 Chinese military aircraft flew over disputed waters off its eastern state of Sarawak.

Fighter jets were scrambled to intercept the transport planes on Monday after detecting "suspicious" activity over the South China Sea.

Malaysia's foreign ministry described the manoeuvre as a "serious threat to national sovereignty".

China, however, said its aircraft had abided by international law.

Malaysia, the Philippines, Brunei, Taiwan and Vietnam all contest China's claim to almost all of the South China Sea. The row has rumbled on for decades but tensions have increased in recent years.

Beijing continues to claim an area known as the "nine-dash line" and has backed its claim with island-building and patrols, expanding its military presence while maintaining that its intentions are peaceful.

https://www.bbc.com/news/world-asia-57328868

@GreatArkansas has a point, maybe this is really in China and not in Malaysia. And assuming this is Malaysia, maybe those miners are tapping illegal electricity and that's why they have to destroyed it in public. And I don't think the Malaysian government is sending signal that they are anti-bitcoin.

[TangentC]

https://www.vice.com/en/article/7kv739/police-destroy-1069-bitcoin-miners-with-big-ass-steamroller-in-malaysia

Is there a legitimate motive for outright destroying mining units. Rather than auctioning or selling them. Aside from politics?

The answer to your question was in the article

mining Bitcoin activities has caused frequent power outages,

PoW is a technical dead end, as it is designed as a winner take all system that uses up all available energy.
* Note the increased energy used does nothing to increase performance only supposed security, which is also false,
since bitcoin security is really the 4 mining pool operators that agree not to collude and doublespend, so energy used is irrelevant. *

China Permanently banned Bitcoin mining because of PoW threat to their power grid,
Iran has temporary banned bitcoin mining because of PoW threat to their power grid, expect this to become permanent within a year.

At the end of the day the destruction of a power grid is becoming a greater risk than any sane person will accept.
Which is why you see videos like above as they want it known, no PoW miners should ever try mining their again.

Bitcoin users have no one to blame except the bitcoin developers who have ignored this energy wasting issue since 2013.

The current PoW ASIC energy sucking system will be banned by all governments in time,
so that mean bitcoin either gets banned with it or finally goes to a new design.
 

[mk4]

Is crypto banned in Malaysia?

If miners doing it illegally and stealing electricity or any illegal activity that against their country just to continue mining, that deserves to be them seizing their mining rigs or mining equipment and being destroyed, I remember this the same case here in my country when there's a backdoor or smuggled cigarette that being seized they destroy them all so that didn't use anymore.

We might do mining without stealing electricity and might we're fine if crypto doesn't ban in our country.

Pretty much this. While it doesn't make that much sense to literally destroy the miners when they can just auction it off for money for important purposes, I guess they're doing this just to send a message to all the illegal miners out there.

As expected though, since a lot of people really don't read articles, they will think that this is Malaysia banning Bitcoin LOL.

[SquirrelJulietGarden]

Is it fair to say a political statement is being made here? Malaysia is doing this as a gesture of appeasement towards china's hard anti bitcoin stance.

It is what Malaysian government did with miners who theft electricity to mine Bitcoin. Or it is what they do to all Bitcoin miners in the nation? In the quote, I see it is the first one.

Is there a legitimate motive for outright destroying mining units. Rather than auctioning or selling them. Aside from politics?

It is wasteful to destroy like this but I guess the Malaysian governments want to signal that they don't tolerate for stealing electricty to mine Bitcoin.

Initially, china banned crypto mining. Many miners relocated their equipment to other countries, or sold them online. The evolution of this process is malaysia now destroying mining units to prevent them from being relocated or sold.

It is good if other nations won't ban Bitcoin mining as same as China.
https://cbeci.org/mining_map

What will happen in China? Ban, crackdown mining. So how about ASIC manufacturing there? Will they ban this industry too?

Internet used to be banned in the past, then now every nation allows it. Some dictatorships like China, North Korea have local restrictions but Internet is everywhere.
https://twitter.com/Davincij15/status/1416384616265564164

[noorman0]

-snip-
@GreatArkansas has a point, maybe this is really in China and not in Malaysia. And assuming this is Malaysia, maybe those miners are tapping illegal electricity and that's why they have to destroyed it in public. And I don't think the Malaysian government is sending signal that they are anti-bitcoin.

I can confirm that the incident really happened in Malaysia based on the police uniform and badge.
Image from different angle.

Uniform comparison: Malaysia >< China

-snip-
They are destroying them in public, so in this case, it was almost the same case, doing publicity.

That is a good warning, a sign that Malaysia is not really banning mining activities as long as miners comply with local regulations.

[Fundamentals Of]

This is probably not a political statement. This is a very strong statement to those who are involved in such illegal activities.

This show of aggressiveness against Bitcoin miners who are stealing electricity might not even be about Bitcoin itself. This is just a strong message to everyone that in the face of insufficient electricity, stealing it is to be dealt with strongly. Power outages is rampant in the area and one of the reasons is the theft done by Bitcoin miners. The local government needs to issue a strong warning. This is their way.

[stompix]

Nothing political:

Six individuals were arrested for electricity theft in the operation

It's the law, you steal, you need to be held accountant for it.

As for the destruction, is again the law, depends on the country, it's not like everything that police seize in an arrest is held for auction, counterfeit goods are destroyed, confiscated food with no papers is destroyed since probably they have no legal way of auction something that is used for a nonregulated activity int he country that was the easiest thing to do.  Plus if they would only have seized the gear it wouldn't have made the headlines everywhere, now the guy involved in underground operations know they will also permanently lose the gear on arrest so they might think twice.

I saw this video recently on Twitter and some users claiming it's on China, really FUD and fake news, lol.

Of course, if there is something bad happening for BTC or there is negative news is definitely fake or FUD. /s
Even the Chinese mining ban was fake and FUD.

[Jawhead999]

Confiscated goods are deserve to be destroyed in publicity since if they didn't destroy it many people will said police is a thief and use that goods for himself. Selling or auctioning those confiscated goods is just like a corruption and doesn't looks fair on both side from the police and perpetrator.

[leea-1334]

I think I saw this already in another thread somewhere,,, happened last week.

Is crypto banned in Malaysia?

If miners doing it illegally and stealing electricity or any illegal activity that against their country just to continue mining, that deserves to be them seizing their mining rigs or mining equipment and being destroyed, I remember this the same case here in my country when there's a backdoor or smuggled cigarette that being seized they destroy them all so that didn't use anymore.

We might do mining without stealing electricity and might we're fine if crypto doesn't ban in our country.

This has nothing to do with crypto being banned it is about stealing electricity,,, which is a crime in any country. Like in Iran where this is rampant, government makes a big subsidy for power to people, but if you steal it, then it makes them mad:)

I always think destroying illegal things is stupid though.

[davis196]

Is there a legitimate motive for outright destroying mining units. Rather than auctioning or selling them. Aside from politics?

People in my country are literally stealing electricity in order to mine cryptocurrencies.
I guess that's why some governments are hostile towards cryptocurrency mining and the mining hardware.
It's better to destroy that mining hardware,instead of selling it to people,that might start stealing electricity again and mine crypto.This is the way of thinking of all the government clerks and officials.
Destroying mining equipment isn't a big deal.I hope that the equipment gets recycled,instead of being sent to the trash and contributing to environment pollution.After all,everybody wants crypto mining to be clean and safe.

[blockman]

I also saw this somewhere and firstly thought that instead of breaking them into pieces, they can just confiscate them and put them into good use. Well, that reasoning of theirs, I can't imagine that it's just all about avoiding being sold and reuse. But the main thing is that the owners of it have been robbing electricity to continue their operations which is against the law everywhere! I think if there's an outage through their electricity consumption, they can also implement what Iran did for imposing a temporary ban for a few months just to sustain and ease the problem of electricity shortage.

[Anonylz]

Is there a legitimate motive for outright destroying mining units. Rather than auctioning or selling them. Aside from politics?

People in my country are literally stealing electricity in order to mine cryptocurrencies.
I guess that's why some governments are hostile towards cryptocurrency mining and the mining hardware.
It's better to destroy that mining hardware,instead of selling it to people,that might start stealing electricity again and mine crypto.This is the way of thinking of all the government clerks and officials.
Destroying mining equipment isn't a big deal.I hope that the equipment gets recycled,instead of being sent to the trash and contributing to environment pollution.After all,everybody wants crypto mining to be clean and safe.

Makes sense, if anyone going to mine btc genuinely with a fully paid electricity without cutting corners, they will most probably run at loss because of the high electricity cost in some countries, using an illegal means to mine btc is definitely a crime that is punishable by the law, government are at the receiving end with their actions because their electricity usage for mining most be running in thousands or millions depending on the countries currency that are unpaid for for, if they are not ready to own up to their responsibilities as miners i guess they left the government no choice than to be hostile.

[Imran232]

When i saw this video on twitter and on a telegram channel its truely heart me a lot. They didn't destroy this machine only they distroy the hope of others of that country. Who wants to be a miner or a crypto users. I don't know which country from this video because some country says its from china or some says its from Malaysia. What ever but the government kill our freedom. Its really affect soo much on crypto price not Only that some people sell their crypto to buy second hand car or some goods. Because of this type of FUD. Don't know what happen next.

[Robinson66]

If it is stolen from time to time, it can be damaged, but it is a bit wasteful. You still have to obey the law. If the country prohibits mining, you can change to another place to continue, it is not illegal. If you continue to mine in a country that is not allowed by the law, then you will be illegal. The state’s destruction of these mining machines is also a kind of energy loss, but the law has been promulgated and can only be enforced. So everyone should abide by the law.

[Lorence.xD]

I doubt that. Bitcoin isn't politically significant, that would be a quite useless and noncommittal move. They didn't want to auction the miners, because they could again create the same problem of electrical outages and electricity stealing.

If you look at it, them steamrolling the mining rigs is kind of a stupid thing and was just a distraction to the real problem which is the electricity outages, it's not like the power outages happens just with this rig if the people in power don't fix the grid then the destruction of those rigs would be for naught and nothing more than showing that they don't plan to solve the problem.