Malaysia cracks down on illegal Bitcoin miners after $1B in stolen electricity

By Phong Ngo December 6, 2025 | 05:17 pm PT

Malaysia has stepped up its crackdown on illegal cryptocurrency mining after national utility company Tenaga Nasional Bhd (TNB) revealed that more than US$1 billion worth of electricity had been stolen over the past five years.

Authorities are deploying drones to detect unusual heat levels, a telltale sign of hidden mining rigs, and using handheld sensors to spot abnormal power consumption. In some cases, investigations begin with local complaints about strange bird sounds, which turn out to be recordings used to conceal the noise of mining equipment behind closed doors, Bloomberg reported.

According to the energy ministry, Malaysia has uncovered around 14,000 illegal mining sites in the last five years. The resulting power theft has caused roughly $1.1 billion in losses for TNB. On Nov. 19, the government formed a special cross-agency task force involving the Ministry of Finance, Bank Negara Malaysia, and TNB to coordinate enforcement.

"The risk of allowing such activities to happen is no longer about stealing," said Akmal Nasrullah Mohd Nasir, deputy minister of energy transition and water transformation, who chairs the panel. "You can actually even break our facilities. It becomes a challenge to our system."

Coins with Bitcoin logo placed in the ground. Photo from Pexels

Cryptocurrency mining is legal in Malaysia, but operators must register and comply with environmental and energy-efficiency regulations. Tampering with meters or bypassing power connections violates the Electricity Supply Act, Channel News Asia noted.

Enforcement has turned into a cat-and-mouse chase. Illegal miners often relocate from one abandoned building to another, using heat shields, CCTV systems, and other deterrents to avoid detection. In one case, an abandoned mall vacated during the Covid pandemic was found packed with Bitcoin mining rigs in 2022 and only shut down in early 2025 after a viral TikTok video exposed it.

At the committee’s first meeting on Nov. 25, officials debated whether to recommend a nationwide ban on Bitcoin mining. "Even if you run it properly, the challenge is that the market itself is very volatile," Akmal said.

He added that the scale and mobility of the illegal operations suggest the involvement of organized crime, with a clear "modus operandi."