Syndicate Earning RM100,000 Monthly from Crypto Mining Busted

Authorities in Johor, Malaysia, have dismantled a cryptocurrency mining syndicate that was illegally profiting by stealing electricity. The syndicate was reportedly making up to RM100,000 per month through its illicit operations.

In coordinated raids conducted over two days, police, in collaboration with Tenaga Nasional Berhad (TNB), inspected four premises linked to the syndicate. During these raids, three local men, aged between 26 and 46, were apprehended. The illegal activity involved bypassing official electricity meters, leading to an estimated loss of RM67,502.30 for TNB.

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The modus operandi of this syndicate is to conduct cryptocurrency mining activities using direct connections without going through a legal meter from TNB.

The syndicate's modus operandi involved direct electrical connections, bypassing the legal metering system to avoid paying for the electricity consumed by their mining rigs. This allowed them to operate without incurring the standard electricity charges. Police seized 71 cryptocurrency mining machines, two vehicles, two computers, and two laptops from the raided locations.

Initial investigations suggest the syndicate had been active for about a month, and police are actively pursuing other syndicate members who are believed to be at large. The arrested suspects have been remanded for four days as the investigation continues under relevant sections of the Penal Code and the Electricity Supply Act. Johor Police have previously conducted similar raids, targeting 16 cryptocurrency mining premises and estimating electricity theft losses at RM1 million.

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This method allows the syndicate to conduct their activities without having to pay electricity bills at the actual rate.