Crime & Courts

More Bitcoin mining operations busted in Penang

GEORGE TOWN: Police raided another four premises here early this morning, used to carry out Bitcoin crypto-currency mining activities, following raids on three similar premises yesterday.

From the four premises, police confiscated 211 units of Bitcoin machines worth RM100,000.

No arrests were made.

Northeast district police chief Assistant Commissioner Soffian Santong said the four shophouses raided this morning were at Lintang Hajjah Rehmah, Jalan Jelutong, Sungai Dua and Lintang Sungai Tiram in Bayan Lepas.

"This brings to seven, the total number of premises raided, since 12.30pm yesterday and 3am today, and the seizure of 411 units of Bitcoin machines worth RM180,000.

"Four men, aged between 20 and 35, were also detained in yesterday's raids," he said today.

Soffian said police have every reason to believe the shophouses were used for the illegal Bitcoin crypto-currency mining activities.

He also said, just like the three premises raided yesterday, these four premises had also illegally connected electricity into their premises.

"The illegal operations of all seven premises for the past two months have resulted in Tenaga Nasional Bhd (TNB) to suffer RM420,000 losses from electricity theft," he added.

It was reported last night that police raided three premises in Jelutong, used to carry out Bitcoin mining activities, and seized 200 units of Bitcoin machines worth RM80,000.

Soffian said police uncovered the Bitcoin mining activities during a raid at the first premises along Jalan Perak about 12.30pm following a police report by a resident there about noises coming from a shophouse.

During this raid, police nabbed the four men. Following interrogation, they led police to the other two premises.

The four men detained claimed they were carrying out maintenance works of the Bitcoin machines and paid RM3,000 each by a man who employed them.

One of them had also claimed that he worked for the past two months, saying that when he started work, the Bitcoin machines were already inside the shophouses.

Police are in the midst of identifying the mastermind behind the syndicate.

The men have been remanded to facilitate investigations under Section 379 and Section 427 of the Penal Code as well as Section 37 of the Electricity Supply Act 1990.

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