Fire at the cryptocurrency mining premise at the Eastwood Industrial Estate. – Photo by SEB
MIRI (Aug 10): The recent fire at the Eastwood Industrial Estate was caused by a cryptocurrency mining operation involving electricity theft of about RM30,000 monthly, Sarawak Energy Berhad (SEB) said in a statement.
The utility company said this was the fourth of such fire since the beginning of this year, reflecting the trend of cryptocurrency mining operators getting more discreet in their operations, targeting secluded locations such as industrial estates to prevent unwanted attention.
SEB said its investigations revealed underground cryptocurrency mining operations involving dangerous and illegal tapping of electricity as the cause of the four fires, including the incident in Eastwood on Aug 2.
Destroyed cryptocurrency miners at the Eastwood Industrial Estate. – Photo by SEB
“Sarawak Energy’s technical team discovered that the electricity supply had been connected illegally without a meter, leading to losses amounting to approximately RM30,000 per month, “ the statement said.
A police report has been lodged for the electricity theft, where 100 cryptocurrency miners were destroyed.
Although no fatalities were reported in those incidents, building owners and neighbours have incurred losses and damages to their properties.
In the Eastwood, firefighters had to call SEB to cut power throughout the area safety reasons before putting out the fire.
Cryptocurrency mining operations typically run 24 hours a day, and direct connection to the overhead lines would cause overload to the electrical network system that would eventually lead to unnecessary outages, or low voltages which could damage appliances and affect nearby customers.
Tampered wirings can cause electrocution of unsuspecting members or fire that would endanger the neighbourhood.
SEB said the authorities will continue to crack down on operators stealing electricity to maximise their profits at the expense of public safety.
Under Section 33(5) of the Electricity Ordinance Offenders can be punished with a maximum penalty of RM100,000 fine and five years jail if convicted in court.