Malaysian authorities have launched a nationwide crackdown on illegal Bitcoin mining after miner-related national power losses exceeded approximately $1.1 billion between 2020 and August 2025, according to power company records and media reports.
The initiative targets approximately 13,800 to 14,000 sites suspected of stealing electricity without paying for it. Activities include drone sweeps, meter checks and ground raids.
The task force begins ground sweeping with drones.
Based on the report, a multi-agency task force was established, including state-owned power company Tenaga Nasional Berhad (TNB), police and other regulators. Teams equipped with drones equipped with thermal cameras and special meters have been used to spot signs of heat or abnormal power consumption in warehouses, shuttered stores and even residential areas.
Bitcoin mining hardware was seized in several operations, and at least several arrests were reported where evidence of meter tampering was found.
Illegal Bitcoin Mining: Estimated Losses and Damages
The scale is large. The report revealed losses of about $1.1 billion (approximately 4.57 billion ringgit), and investigators said nearly 14,000 illegal facilities had been discovered since 2020.
Authorities have warned that power theft related to mining has increased sharply in recent years, with some sources pointing to an increase of around 300% since 2018. Many operators choose low-cost hiding spots and continue to move to avoid detection.
Legal and policy questions loom
Bitcoin mining itself is not completely prohibited in Malaysia, but stealing electricity or bypassing meters is illegal under the Electricity Supply Act 1990. Authorities are considering stricter measures. Some lawmakers and energy officials have raised the option of stricter licensing, smarter meters and even temporary bans on certain operations if thefts continue.
The effort is aimed at protecting the stability of the power grid and preventing long-term losses that would hurt utility companies’ profits, according to the report.
Safety risks and strain on the power grid
Beyond funding, officials say there are safety concerns. Tampering with connections or overloading lines can increase the risk of short circuits and fires, and can damage transformers and other expensive equipment.
In some areas, locals have reported flickering lights and unreliable supplies, which investigators have linked to abnormal mining found in nearby illegal mines. These technical burdens increase the urgency of enforcement.
what happens next
The report says enforcement will rely on a combination of technology such as drones, thermal scanning and smart meters, as well as traditional police forces. The immediate goal is to shut down the rigs, seize the equipment and take legal action against the operators who took power without paying. Longer-term efforts are likely to include clearer rules for legal miners and increased monitoring across the grid.
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