Malaysia Cracks Down on Bitcoin Mining, Seizing 14,000 Rigs Over $1B Power Theft

The Malaysian government has launched a nationwide crackdown on illicit Bitcoin mining, seizing over 14,000 rigs suspected of tapping into the power grid without paying. The operation, which began in late 2025, aims to curb power theft linked to mining, which has resulted in losses of approximately $1.1 billion since 2020.

According to utility records and media reports, the crackdown targets sites suspected of stealing power without paying, using a combination of drone sweeps, meter inspections, and on-the-ground raids. The multi-agency task force, which includes the national utility Tenaga Nasional Berhad (TNB), police, and other regulators, has been working to spot heat signatures and odd power draws using thermal cameras and special meters.

Task Force Launches Drone and Ground Sweeps

The task force has been using drones fitted with thermal cameras to scan for heat signatures and detect abnormal power draws in warehouses, shuttered shops, and even residential blocks. In some areas, residents reported flickering lights and unstable supply, which investigators link to abnormal draws found at nearby illegal mining sites.

Illegal Bitcoin Mining: Estimated Losses and Numbers

The scale of the problem is significant, with reports disclosing losses of approximately $1.1 billion, or roughly RM 4.57 billion, since 2020. Investigators say the number of illicit premises discovered since 2020 is close to 14,000. Power theft linked to mining has climbed sharply in recent years, with some sources pointing to an increase of about 300% since 2018.

Safety Risks and Grid Strain

Beyond the financial losses, authorities say there are safety concerns. Tampered connections and overloaded lines raise the risk of short circuits and fires, and can damage transformers and other costly equipment. The investigation has found that some mining operations have been using makeshift sheds and warehouses, which can lead to technical strains and grid instability.

What Comes Next

Enforcement efforts will rely on a mix of technology, including drones, thermal scans, and smart meters, as well as traditional policing. The immediate goal is to shut down rigs, seize equipment, and bring legal action against operators who took power without paying. The long-term path may include clearer rules for legal miners and tighter monitoring across the grid.

Key Statistics

$1.1 billion: estimated losses attributed to Bitcoin mining since 2020
14,000: number of illicit premises discovered since 2020
300%: increase in power theft linked to mining since 2018
13,800-14,000: number of sites suspected of tapping power without paying

Expert Insights

“The scale of the problem is alarming, and the fact that it’s not just a matter of individual cases, but a widespread issue that’s affecting the entire grid, is a concern. We need to take a comprehensive approach to address this issue,” said a spokesperson for the Malaysian government.

Legal and Policy Questions Loom

While Bitcoin mining itself is not outright banned in Malaysia, stealing power and bypassing meters is illegal under the Electricity Supply Act 1990. Officials are weighing tougher steps, including stricter licensing, smarter metering, or even temporary bans on certain operations if theft continues.

FAQ

Q: What is the estimated cost of the crackdown on Bitcoin mining?
A: The estimated cost of the crackdown is not publicly available, but reports suggest that the government has seized over $1 billion in equipment and assets.

Q: How many illicit premises have been discovered since 2020?
A: According to investigators, the number of illicit premises discovered since 2020 is close to 14,000.

Q: What is the long-term goal of the government’s crackdown?
A: The long-term goal is to shut down illicit mining operations, seize equipment, and bring legal action against operators who stole power without paying. The government may also consider clearer rules for legal miners and tighter monitoring across the grid.