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A LOCAL trader was fined RM80,000 by the Sessions Court in Kota Bharu on Monday after pleading guilty to illegally tapping into the electricity supply to power a cryptocurrency mining operation.
Judge Nik Habri Mohamad imposed the fine on 43-year-old Loo Siong Hong, warning that the sentence was intended to deter both him and others from similar offences.
“Cases like this are rare in Kota Bharu. I hope this is the first and last. I want this punishment to serve as a lesson to you and to others,” he said.
According to the charge, Loo unlawfully bypassed a Tenaga Nasional Berhad (TNB) meter, connecting electricity from a fused switch terminal directly to his premises via metal wiring, which was then routed to his computer systems.
The offence occurred at a property in Kampung Lundang at approximately 3 p.m. on 15 October last year.
Loo was charged under paragraph 37(3)(e) of the Electricity Supply Act 1990 [Act 447], which carries penalties under sub-subparagraph 37(3)(A)(ii) of the same act.
Conviction may result in a fine ranging from RM20,000 to RM1 million, imprisonment of up to five years, or both.
During the proceedings, Loo, who was unrepresented by counsel, appealed for leniency, seeking a reduction in the fine and no custodial sentence. Expressing remorse, he said, “I fully cooperated with the Energy Commission. As a small trader, my income is unpredictable, and I bear the costs of housing and caring for my mother.”
Prosecutor Khairul Nizam Mohd Kamal, Director of the Legal Department at the Energy Commission, urged the court to impose an appropriate sentence, emphasising the risks and public safety concerns associated with illicit electricity use for cryptocurrency mining.
“This is not a typical electricity theft. It is a deliberate and organised crime with significant impact on public users. The theft caused an estimated RM1.33 million loss to TNB due to system losses, affecting operational costs and the electricity supply system,” he said. He further noted that law-abiding consumers ultimately bear the cost of electricity tariff increases caused by such theft.
The court ultimately sentenced Loo to pay a fine of RM80,000, with an alternative of 12 months’ imprisonment should he fail to settle the payment. Loo has paid the fine. - January 5, 2025
