Malaysia has seized more than 75,000 crypto-mining machines in a nationwide power-theft crackdown, officials said — part of more than 3,000 raids carried out between 2022 and May 2026.
Deputy Home Minister Datuk Seri Dr Shamsul Anuar told the Dewan Rakyat on Wednesday, according to state news agency Bernama, that the operations — which involved the Royal Malaysia Police, state utility Tenaga Nasional Berhad (TNB) and local authorities — also produced 629 arrests. The actions target illicit mining setups that cut costs by stealing electricity or tampering with meters, rather than a broader effort to curb cryptocurrency ownership or trading, which remain permitted in Malaysia (though not legal tender).
“We are expanding our enforcement approach, relying more on intelligence and technology to identify hotspots so we can respond faster and take more precise action,” Shamsul Anuar said. He attributed illegal mining’s persistence to strong demand for digital assets and the lure of profits from volatile token prices, but stressed that potential gains do not justify crimes such as electricity theft.
Why authorities are focused on power theft
- Mining rigs run around the clock and draw heavy, continuous loads. Operators often bypass or manipulate meters to conceal consumption, creating large unbilled losses that utilities detect only when usage and bills diverge.
- Malaysia’s regulatory split: the Securities Commission Malaysia oversees digital-asset regulation, while Bank Negara Malaysia handles financial stability, payments and anti-money-laundering compliance. The Home Ministry’s crackdown is squarely aimed at preventing unauthorized electricity use, meter tampering, disruption of power systems, and unlicensed operations.
Scale and history of the campaign
- The latest figures extend a multi-year campaign. In late 2025, the energy ministry estimated about $1.1 billion in power losses tied to roughly 14,000 illegal mining sites uncovered over the previous five years. A task force involving the finance ministry, Bank Negara and TNB was formed to pursue offenders.
- Enforcement has sometimes been theatrical: seized rigs have been destroyed by steamroller in multiple public operations — hundreds in 2024 and around 1,000 in 2021.
Regional context
Malaysia’s crackdown is part of a wider regional trend. Authorities in Thailand dismantled a multimillion-dollar mining operation, and Hong Kong has seen arrests tied to electricity siphoning for crypto rigs.
What this means for miners and the market
Legitimate miners must ensure proper licensing and compliant electricity arrangements to avoid enforcement action. For policymakers and operators, these developments highlight the tensions between energy consumption, grid stability, and the rapid growth of crypto activity — an issue that regulators in the region continue to confront.
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