Govt suffered RM2.3 billion loss due to BTC mining syndicate - Azam Baki

PUTRAJAYA: Electricity theft by a bitcoin mining syndicate from 2018 to 2021 have caused losses of over RM2.3 billion to the government, Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki said.

He said the huge losses were detected from 7,209 cases involving the syndicate throughout the country.

Selangor had the highest number of cases, with 2,311, followed Perak (1,349); Kuala Lumpur (732); Johor (723); Negeri Sembilan (599); Kedah (481); Pulau Pinang (344); Melaka (314); Pahang (288); Kelantan (37); Perlis (19); and Terengganu (12), he added.

According to him, the MACC detained 18 local men, including the syndicate's mastermind, aged between their 30s and 60s, in a nationwide operation yesterday.

"One of the suspects controlled 500 premises in Peninsular Malaysia. We also seized RM2.3 million in cash involving 998 premises," he said at a special media conference at the MACC headquarters here today.

Azam said MACC also seized RM281,180 in cash, froze 126 bank accounts holding a total of RM4.4 million belonging to 97 individuals and 29 companies and confiscaed 1,157 mining rigs, each worth an estimated RM2,000 totalling RM2.3 million, as well as RM82,000 in e-wallet credit.

Various cryptocurrencies worth RM108,545.38 (US$25,893.46), five cars - a BMW, a Honda Accord, a Toyota Vellfire, a Ford Ranger and an Audi as well as various jewellery were also seized.

"Intelligence gathered by the MACC confirmed these incidents occurred almost all over the country and we detected a total of 998 premises rented for such activities," he explained.

He said the syndicate operators would negotiate with TNB officers during enforcement operations while Tenaga Nasional Berhad (TNB) confirmed there were bribes between RM3,000 and RM300,000 offered to ensure enforcement action would not be taken and to gain leaked information about operations.

Azam said bribes were paid on a monthly basis in two ways, cash and cryptocurrency.

These activities resulted in losses to the government, especially to TNB, and affected electricity supply to critical facilities such as clinics, hospitals, dialysis treatment centres, he said.

In addition, Azam said the activities would result in damaged electrical appliances and fires at the premises, and premise owners would end up being held accountable for the claims and actions imposed by TNB.

"The syndicate used the latest bitcoin mining rigs purchased from China, which were brought in through Port Klang and declared as information technology equipment," he added.

-- BERNAMA