KANGAR: Police have foiled an illegal Bitcoin mining operation that caused nearly RM1.3 million in losses due to electricity theft following the arrest of a man in Kuala Perlis on Jan 18.

The 27-year-old suspect was detained around 5pm after police received a tip-off regarding the unauthorised use of electricity at a business premises in Susuran Marina, Kuala Perlis.

Perlis police chief Datuk Muhammad Abdul Halim said a task force was formed to track down the operation, which is believed to have been running since last year.

"Acting on the tip-off, police raided the premises, leading to the suspect's arrest and the seizure of various mining equipment.

"We detained the operator and confiscated 42 Bitcoin mining rigs worth a total of RM126,000, along with four WiFi routers, a computer, and a mobile phone used in the operation," he said at a press conference at the Simpang Empat police station today.

Initial investigations found that the suspect had been running the mining activities at the premises for about a year.

"The suspect tapped into the power supply of a busy commercial area to run the mining operation around the clock, seven days a week.

"This excessive power consumption was detected by Tenaga Nasional Bhd (TNB), which recorded an average monthly usage of RM100,000.

"A joint inspection with TNB technicians confirmed that the premises had been illegally connected to the power grid, causing losses amounting to RM1,290,238.80," he said.

The suspect is currently in custody to assist investigations under Section 427 of the Penal Code for mischief and Section 37 of the Electricity Supply Act 1990.