The mining of cryptocurrencies remains a flashpoint of controversy, with passionate arguments on both sides. The environmental effects of the practice have garnered significant attention, as have unscrupulous people involved in the industry. 

Examples of this are global, with one recent case coming out of Malaysia. 

What's happening?

Illegal cryptocurrency mining operations have resulted in losses of over one billion dollars for the multinational power company Tenaga Nasional, headquartered in Kuala Lumpur, according to Bitcoin World. The mining of cryptocurrency requires the use of significant amounts of power, so the ability to circumvent payment can result in tremendous financial misappropriation. 

Illegal miners employed sophisticated systems to evade paying proper rates for the power they were using. Their methods appear to have included tampering with meters and making direct, unauthorized connections to powerlines. 

Why is illegal crypto mining concerning?

There are many arguments for and against the practice of crypto mining. Opponents say the massive energy needs of the operations pose tremendous environmental hazards and make power more expensive by boosting demand. Studies have shown that the practice is a significant driver of heat-trapping pollution worldwide. 

But proponents have argued that the practitioners are helping fuel a clean energy boom. Miners have partnered to help finance renewable energy projects worldwide. So theft in the industry is a problem for everyone — it damages the industry's reputation and could make the road ahead for legitimate practitioners much more difficult. 

It can also exacerbate the negative environmental effects, as criminals typically do not follow regulations designed to mitigate energy use. 

What's being done about illegal crypto mining?

Governments around the world are pursuing regulation and enforcement strategies to protect the environment, companies, and consumers from the consequences of illegal crypto mining. 

In Malaysia, authorities have assembled a joint task force comprising energy officials, telecommunications experts, police, and anti-corruption officials to fight back. According to Bitcoin World, the task force has resulted in the prosecution of organized crime members, the identification of the ways the criminals have been bypassing payment, and the seizure of mining rigs and other equipment. 

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