Malaysia has launched an aggressive nationwide crackdown on illegal Bitcoin mining after authorities revealed that power thieves have drained about 4.6 billion ringgit (about 1.1 billion dollars) of electricity from the national grid since 2020.
Scope of Illegal Bitcoin Mining on the Grid
The Ministry of Energy and Water Transformation reports that 13,827 premises siphoned electricity from Tenaga Nasional Berhad (TNB), the state-owned utility, to run concealed crypto-mining farms over roughly 5 years. Officials say operators typically bypass or tamper with meters, drawing huge loads without paying and pushing local transformers and distribution lines to the brink of failure.
According to Bloomberg, the ministry describes the activity as a serious threat to Malaysia’s energy supply system and economic stability, as stolen power weakens TNB’s finances and limits its ability to maintain and upgrade infrastructure. Regulators also warn that unregulated mining sites increase fire risk, as high-powered rigs run nonstop in cramped rooms with improvised wiring and poor ventilation.
Response Measures by Malaysian Authorities
Authorities have responded with a coordinated crackdown involving police, the energy ministry, the communications regulator, the anti-graft agency, and local councils. A cross-agency task force launched in November now leads enforcement, pooling data and planning joint raids on suspected mining hubs in shop lots, warehouses, and abandoned homes.
Investigators use drones to scan rooftops and industrial zones for abnormal heat signatures that signal banks of mining rigs running out of sight. On the ground, officers deploy handheld sensors to spot irregular electricity consumption and follow up on residents’ reports of unusual humming or “bird song” noises used by miners to mask fan noise.
When fresh irregularities arise on smart meters and substation monitoring systems, TNB’s internal database of property owners and renters connected to previous or suspected power theft provides enforcement teams with a place to start. The utility also encourages broader use of artificial intelligence, real-time analytics, and smart infrastructure to identify hidden mining farms by identifying tampering trends and abrupt load surges.
Although cryptocurrency mining is not entirely illegal in Malaysia, businesses must register, comply with safety regulations, and pay for power at regulated rates. To preserve grid stability, public safety, and state income from illegal cryptocurrency mining, officials have framed the post-1.1-billion-dollar crackdown as a long-term campaign and now indicate that tolerance for noncompliance is decreasing.
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