According to utility records and media reports, Malaysian authorities have begun a nationwide crackdown on illegal Bitcoin mining after state power losses linked to miners topped roughly $1.1 billion between 2020 and August 2025.
The push targets nearly 13,800–14,000 sites suspected of tapping power without paying. Actions have included drone sweeps, meter inspections and on-the-ground raids.
Task Force Launches Drone And Ground Sweeps
Based on reports, a multi-agency task force was formed that includes the national utility Tenaga Nasional Berhad (TNB), police and other regulators. Drones fitted with thermal cameras and teams with special meters have been used to spot heat signatures and odd power draws in warehouses, shuttered shops and even residential blocks.
Bitcoin mining hardware were seized in several operations and arrests were reported in at least a few cases where evidence of meter tampering was found.
Illegal Bitcoin Mining: Estimated Losses And Numbers
The scale is large. Reports have disclosed losses of about $1.1 billion, which is roughly RM 4.57 billion, and investigators say the number of illicit premises discovered since 2020 is close to 14,000.
Authorities warned that power theft linked to mining has climbed sharply in recent years, with some sources pointing to an increase of about 300% since 2018. Many operators pick low-cost hiding spots and keep moving to avoid detection.
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. Some lawmakers and energy officials have raised the option of stricter licensing, smarter metering or even temporary bans on certain operations if theft continues.
Based on reports, the effort is meant to protect grid stability and stop long running losses that hit the utility’s bottom line.
Safety Risks And Grid Strain
Beyond the money, authorities say there are safety concerns. Tampered connections and overloaded lines raise the risk of short circuits and fires, and they can damage transformers and other costly equipment.
In some areas, local residents reported flickering lights and unstable supply, which investigators link to abnormal draws found at nearby illegal mining sites. Those technical strains add urgency to enforcement.
What Comes Next
Reports suggest enforcement will rely on a mix of tech—drones, thermal scans, smart meters—and traditional policing. For now, 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.
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