Business

SESB lost RM16 mil this year due to crypto mining: CEO

Offenders using illegal power connections to carry out activity, says Mohd Yaakob Jaafar

Updated 3 years ago · Published on 23 Nov 2022 5:54PM

SESB lost RM16 mil this year due to crypto mining: CEO
Sabah Electricity Sdn Bhd chief executive officer, Mohd Yaakob Jaafar, says the state utilities firm, in collaboration with police, have raided 54 premises in Sabah identified as making illegal power connections for carry out cryptocurrency mining activities. – Wikimedia Commons pic, November 23, 2022

TAWAU – Sabah Electricity Sdn Bhd (SESB) has recorded RM16 million in losses over 11 months this year due to cryptocurrency mining activities, such as for bitcoin, that used illegal electricity connections in Sabah.

Its chief executive officer, Mohd Yaakob Jaafar, said during this period, SESB – in collaboration with police – had raided 54 premises that were identified as making illegal power connections for the activity.

He said one of the offenders was arrested in Tuaran, while other locations conducting the activity throughout Sabah had been identified with further action now in the process of being implemented.

“I seek the public’s cooperation to report any such activities to SESB, that not only cause losses for the company but for all users and customers as well, because when there is an illegal connection it will indirectly cause supply disruptions due to excessive current loads (to conduct mining),” he said.

Yaakob told reporters this after the handing over of SESB operational support equipment to the Sabah contingent police headquarters’ Criminal Investigation Department (CID) here today attended by Bukit Aman CID director Datuk Seri Abdul Jalil Hassan. 

Yaakob said illegal electricity connections involving bitcoin mining began in 2018 and SESB currently has 11 enforcement teams actively working to curb the activity.

“The non-technical loss due to the illegal bitcoin mining is around 7% on average, which is equivalent to a loss of RM140 million a year, so it is reasonable for SESB to combat this so that this loss does not burden SESB,” he added.

Meanwhile, Jalil said the cooperation between police and SESB is important to completely eradicate electricity theft, including through cryptocurrency mining activities in Sabah.

He said Sabah CID needs to step up investigations and operations involving cases of illegal wiring connections and electricity theft for bitcoin mining.

“Police in cooperation with SESB will take strict action against any party that steals electricity in Sabah,” he added.

SESB today handed over support tools worth RM120,000 for police personnel to use in operational tasks involving the eradication of cryptocurrency mining activities in Sabah. – Bernama, November 23, 2022

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