Ahsmon (second left) at the factory in Demak Laut Industrial Estate which had housed a bitcoin mining centre. – Photo by Roystein Emmor.
KUCHING (July 26): A factory that appeared to be abandoned at Demak Laut Industrial Estate here was raided by police today after it was alleged to be a bitcoin mining centre.
The raid in collaboration with Sarawak Energy Berhad saw the arrest of a 30-year-old foreign national, who is believed to be the factory’s caretaker.
Kuching District police chief ACP Ahsmon Bajah told reporters after the raid that police were now hunting for two caretakers who had escaped when his men arrived.
He said based on intelligence, the centre was set up about 87 days ago and had illegally used RM110,000 worth of electricity.
“This is the first successful arrest and raid with regard to bitcoin mining for Kuching police in collaboration with our long-time partner, the Sarawak Energy Berhad (SEB), and this operation resulted from a public tip off to our 15 member team led by Gita Police station chief ASP Mohamad Nizam Bujang,” he said.
The case is being investigated under Section 33 of the Sarawak Electricity Ordinance and Sections 379 and 427 of the Penal Code.
Ahsmon said since the arrested foreign national had no valid travel documents, the investigation will also come under the Immigration Act.
During the raid, 170 computer hardware were discovered.
“Imagine the electricity that they consumed with 170 machines for 24-hour bitcoin mining.
“The graphics processing unit (GPU) used for industries, uses high rates of electricity with improperly constructed cooling systems which results in electricity consumption that goes beyond the existing electrical systems,” he said.
“We will continue to hunt those who are involved in illegal bitcoin mining which caused electricity loss to the state,” he said, adding that the high consumption of electricity by bitcoin mining could endanger the public by causing short circuits.