Malaysia has launched an aggressive nationwide crackdown on illegal Bitcoin mining after authorities revealed that power thieves drained about 4.6 billion ringgit (around 1.1 billion dollars) worth 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 five years. Officials say operators typically bypass or tamper with meters, drawing huge loads without paying and pushing local transformers and distribution lines close to failure.
The ministry describes the activity as a serious threat to Malaysia’s energy supply system and economic stability because the 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 non-stop in cramped rooms with improvised wiring and poor ventilation.
Response Measures by Malaysia 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 taskforce 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 completely illegal in Malaysia, businesses are required to register, adhere to safety regulations, and pay for power at regulated pricing. To preserve grid stability, public safety, and state income from illegal cryptocurrency mining activities, officials have framed the post-1.1 billion dollar crackdown as a long-term campaign and now indicate that tolerance for non-compliance is decreasing.
READ MORE: Here’s Why American Bitcoin Stock Crashed: Time to Buy ABTC Dip?
