While in China local authorities, by order of the central office in Beijing, prohibit miners from mining cryptocurrencies, closing their companies, punishing them with gigantic fines, Malaysia decided to act much tougher, destroying miners’ equipment in public psychological action.
In order not to deal with bureaucratic procedures that require approval and time, the authorities decided that the best way in such a situation was a road roller.
At least 1000 ASIC miners were liquidated at the direction of law enforcement agencies. They were used to mine Bitcoins. The equipment seized from mining farms that were operating without permission from the authorities this spring. The operations took place from February to April this year.
A conventional road roller used to destroy the equipment. Special equipment drove over the ASICs, crushing them. According to representatives of the Malaysian police department, such a measure should underline the seriousness of the authorities’ intentions.
According to preliminary estimates, the price of the equipment was at least $ 1.25 million. The video originally appeared on the Chinese messenger WeChat. From the background in the picture, it is difficult to understand exactly where the equipment was destroyed. So some commentators have suggested that the video filmed in China or Latin America. Later, the Malaysian edition of The Star reported that in this way the authorities of the city of Miri from Sarawak state destroyed ASIC miners.
Why did the authorities make the decision to destroy the devices?
As it turned out, the mining farms were running without permits. The electrical connection was illegal. During the time that they worked and mined cryptocurrency, the amount of stolen electrical energy in dollar terms amounted to $ 2 million.
In addition, mining farms were also dangerous for the residents of the surrounding areas. During the last 6 months, due to the operation of mining farms, fires have occurred, destroying several residential buildings. It is good that there were no casualties among the population.
To stop the activities of such farms, which threaten the lives of people and steal electricity, regulators decided to destroy the equipment with a road roller.
Such a measure is likely to have a strong psychological effect on miners who still continue to illegally mine cryptocurrency. They need to know that the authorities will act quickly and ruthlessly.
It is worth recalling that different countries use other mechanisms to prohibit the illegal mining of digital coins. As a rule, these are bureaucratic bans, fines, and orders. In Malaysia, they decided to choose a more spectacular and intimidating method to show all miners who work without permission that if necessary, they will literally destroyed.
Detention of miners
Earlier, the authorities of the Malaysian state of Johor detained miners on suspicion of stealing electricity for $ 600,000. During searches, law enforcement officers found 148 pieces of equipment for mining cryptocurrencies.
We will remind, in June 2021, the Malaysian police arrested four suspects in organizing illegal connection to power grids for Bitcoin mining and seized 411 devices. Note that according to researchers from Cambridge, at the moment, miners from Malaysia account for about 4% of the total hashrate of the Bitcoin network.