Malaysia Cracks Down on Illegal Bitcoin Miners After $1B Power Theft

Malaysia Cracks Down on Illegal Bitcoin Miners After $1B in Stolen Power

Kuala Lumpur: Malaysia has intensified its enforcement against illegal cryptocurrency mining operations after the national utility, Tenaga Nasional Berhad (TNB), revealed that over US$1 billion worth of electricity had been stolen in the past five years. The disclosure triggered a nationwide crackdown and the formation of a multi-agency task force aimed at stopping unlicensed miners draining public resources and overloading national power infrastructure.

Officials say the coordinated drive marks one of the country’s most extensive operations against digital energy exploitation to date.

$1 Billion Power Theft Sparks Full-Scale Enforcement Action

According to TNB, illegal miners have collectively siphoned electricity worth over US$1 billion (approx. ₹9,000 crore), causing significant revenue losses while placing parts of the grid under extreme stress.

Authorities have now deployed a blend of new-age surveillance measures, including:

• Drone-based aerial monitoring

• Thermal sensors to detect heat signatures of mining rigs

• Power consumption analytics to flag suspicious usage

In several instances, investigations followed public complaints about unusual noises — later traced to recorded bird sounds used to disguise the hum of large-scale mining equipment.

14,000 Illegal Mining Sites Identified Nationwide

Malaysia’s Energy Ministry confirmed that more than 14,000 illicit mining sites have been found in recent years, contributing to estimated losses exceeding US$1.1 billion.

A special task force was constituted on November 19 with representatives from:

• Ministry of Finance

• Bank Negara Malaysia

• Tenaga Nasional Berhad

The task force is chaired by Akmal Nasrullah Mohd Nasir, Deputy Minister of Energy Transition and Water Transformation, who warned that the issue now threatens national energy stability.

A Cat-and-Mouse Chase as Operators Outsmart Enforcement

While cryptocurrency mining is legal in Malaysia, operators must be licensed and compliant with environmental and power regulations. Under the Electricity Supply Act, illegal tapping, meter tampering and unregistered connections are criminal offences.

Still, enforcement remains challenging. Illegal miners frequently:

• Shift locations between warehouses, houses and commercial complexes

• Install heat shields, soundproofing and CCTV for early detection

• Abandon entire sites once they suspect investigation

One high-profile case involved an abandoned shopping mall filled with mining rigs, discovered in 2022 but sealed only in early 2025 after a video of the site went viral on social media.

Growing Evidence of Organised Criminal Involvement

Officials say the scale, coordination and financial sophistication of these operations point to involvement by organised crime networks rather than lone miners.
Patterns such as rapid site deployment, large-scale equipment movement and structured financing suggest syndicates with substantial resources and logistical support.

Police and cybercrime units are now examining funding trails, equipment suppliers and cross-border networks linked to the illegal operations.

Government Considers Nationwide Bitcoin Mining Ban

In the first meeting of the task force on November 25, policymakers debated whether Malaysia should consider banning Bitcoin mining altogether.

Officials argue that even licensed mining brings challenges, including:

• Heavy energy consumption

• Strain on ageing power infrastructure

• Market volatility tied to crypto prices

For now, licensed mining will continue under stricter surveillance, enhanced licensing requirements and faster enforcement protocols.

A Harder Line on Digital Energy Exploitation

Malaysia's sweeping crackdown highlights rapidly growing global concerns over the environmental and infrastructural costs of cryptocurrency mining. Illegal miners operating at industrial scale have pushed authorities to adopt more aggressive policing tools and policy measures.

As the country steps up monitoring and enforcement, Malaysia could soon emerge as one of Asia’s toughest jurisdictions on illicit crypto mining.

The scale of Malaysia’s energy-related cyber operations reflects how crucial governance, structured processes and transparent systems have become in today’s digital economy. Organisations worldwide are now prioritising strong internal controls and expert financial advisory to stay resilient amid rising technological and regulatory risks.

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