Malaysia Cracks Down on Bitcoin Miners Stealing $1.1B of Electricity

TLDR

• Malaysia’s crackdown targets 14,000 illegal Bitcoin mining rigs stealing $1.1B in power.
• The operation uses drones and sensors to locate hidden Bitcoin mining setups.
• The stolen electricity could have supported 373,000 households for a year.
• Illegal miners have caused a 300% increase in electricity theft from 2018 to 2024.

Malaysian authorities have launched a major crackdown to dismantle nearly 14,000 illegal Bitcoin mining rigs that have been siphoning $1.1 billion worth of electricity since 2020. Using drones and advanced sensors, authorities are targeting hidden operations that not only steal power but also threaten the national grid. This surge in illegal mining has led to a sharp increase in electricity theft, posing significant risks to Malaysia’s infrastructure.

Malaysia Forms Task Force to Combat Bitcoin Mining Rigs

Malaysian authorities have launched a specialized task force aimed at dismantling illegal Bitcoin mining operations that have been siphoning large amounts of electricity from the national grid. The crackdown follows reports that around 14,000 illicit mining rigs have been operating since 2020, causing an estimated $1.1 billion in electricity losses.

To locate these hidden operations, authorities have employed a combination of advanced drone technology and ground-level policing. Drones are used to detect thermal signatures, while police on the ground utilize sensors to monitor unusual electricity consumption. Neighbors often tip off authorities about strange noises, which have led to the discovery of mining rigs set up in vacant buildings or abandoned homes.

Bitcoin Mining Rigs Cause Over $1.1B in Power Losses

Since 2020, illegal Bitcoin miners in Malaysia have caused significant financial losses to the national utility, Tenaga Nasional (TNB), by illegally drawing electricity. The estimated value of the stolen power, $1.1 billion, could have been used to fund basic food needs for over 567,000 Malaysians for an entire year.

The scale of electricity theft has led to a growing concern over the impact on Malaysia’s energy infrastructure. According to Akmal Nasrullah Mohd Nasir, the deputy minister of energy transition and water transformation, these illegal mining operations not only steal power but also pose risks to national infrastructure. “The risk of allowing such activities to happen is no longer about stealing,” Nasir explained. “You can actually even break our facilities, which becomes a challenge to our system.”

Mining Operations Are Highly Mobile and Difficult to Detect

Illegal Bitcoin miners have adapted to evade detection by Malaysian authorities, operating in highly mobile setups that can easily be relocated. Miners often move between abandoned properties, where they quickly set up and dismantle their operations. Some mining rigs are reinforced with heat-proof panels, CCTV systems, and other barriers to delay raids.

The mobile nature of these operations makes it difficult for authorities to locate and shut them down. In many instances, miners use additional tactics to cover up their activities, such as playing recorded bird sounds to mask the constant noise from mining machines.

Sharp Rise in Electricity Thefts Over Recent Years

The problem of illegal Bitcoin mining in Malaysia has been escalating. Between 2018 and late 2024, electricity theft increased by 300%, leading to a surge in investigations and shutdowns. In response, authorities have ramped up their efforts to track down and dismantle these operations, with over 2,400 illegal mining sites shut down by the end of 2024.

Despite the legal status of Bitcoin mining in Malaysia, when done with legitimate power sources and proper taxes, the majority of operations detected in recent years are using stolen electricity. As Bitcoin prices saw significant fluctuations in 2025, with some reaching record highs before sharp drops, the demand for mining activities also spiked. This surge, coupled with the stolen electricity, has put an enormous strain on Malaysia’s national grid.

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