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Court Orders Disposal of 150 Seized Crypto Mining Machines in Sarawak

Sarikei Magistrates' Court Approves Disposal of Unclaimed Cryptocurrency Mining Machines

  • Sarikei Magistrates’ Court approved the disposal of approximately 150 unclaimed cryptocurrency mining machines seized from various premises since 2021.
  • The equipment was connected to direct tapping cables that bypassed electricity meters, constituting power theft under the Electricity Ordinance.
  • Landlords are urged to transfer electricity accounts to tenants to avoid legal implications from electricity theft committed by renters.

Malaysian authorities have received court approval to dispose of approximately 150 cryptocurrency mining machines seized during electricity theft investigations in Sarawak. The Sarikei Magistrates’ Court granted the application filed by the Sarawak Ministry of Utility and Telecommunications after the equipment, confiscated from several residential and commercial properties since 2021, remained unclaimed by the owners and tenants of the premises.

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Magistrates Stella Augustine Druce and Oon Kork Chern authorized the disposal under Section 32B(7) of the Electricity Ordinance (Chapter 50) and Section 407A(e) of the Criminal Procedure Code (Act 593). The ruling encompasses cryptocurrency mining equipment, mobile computers, and electrical apparatus seized during investigations.

Representatives from Syarikat Sesco Berhad (Sesco) presented evidence to the court showing that the confiscated items included direct tapping cables connected to cryptocurrency mining machines that bypassed the officially installed electricity meters. These illegal connections were discovered at six different locations across Sarikei and Sibu.

“While the last known owners and suspected tenants of the premises have been notified of the seizure, none has claimed over the items from either the ministry or the licensee at Sibu Regional Office,” stated the ministry in their release.

The seized equipment was transferred to Section 32A personnel at the ministry for further investigation under the Electricity Ordinance. Officials from both the Sarawak Ministry of Utility and Telecommunications and Sesco’s Retail Department attended the court proceedings.

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Cryptocurrency mining operations consume substantial electrical power as servers operate continuously and require cooling systems to prevent overheating. This energy-intensive process often becomes a target for power theft schemes. The ministry warned that non-standard electrical installations can overload systems, potentially causing short circuits, equipment damage, fires, and even fatalities.

The public has been cautioned against trusting service providers who claim they can reduce electricity usage or enable unlimited power consumption through meter tampering. Sarawak Energy Bhd has deployed meter inspection teams trained to detect various electricity theft methods, including tampered meters, fake meter covers, underground direct tapping, and smart meter anomalies.

Authorities have specifically urged property owners to exercise caution when renting premises and to ensure electricity accounts are properly transferred to tenants to avoid being implicated in power theft activities conducted by their renters.

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