Malaysian Authorities Seize Over $52K in Equipment From Illegal Bitcoin Mining Raid
Malaysian authorities have dismantled another illegal Bitcoin mining operation, this time targeting sites in Hulu Terengganu and Marang, located in the country’s northeastern region.
Acting on intelligence, police conducted coordinated raids at two locations—Bukit Perpat in Hulu Terengganu and Wakaf Tapai in Marang—where they uncovered an illicit crypto mining setup powered by stolen electricity.
The enforcement action resulted in the seizure of 45 Bitcoin mining machines, with an estimated value of $52,145 (RM225,000), along with various other tools used by the operation.
🚨 Terengganu police dismantle illegal bitcoin mining ring stealing electricity ⚡💰. Raids seized 45 machines (RM225k) tied to RM36k/month losses. No arrests yet.
- 45 bitcoin mining machines worth RM225k confiscated in joint police-TNB raids.
- Syndicate caused RM36k…
— Bitcoin.com News (@BTCTN) May 1, 2025
Authorities believe the syndicate was siphoning electricity from the national grid, operating discreetly across both residential and commercial premises to evade detection.
According to Terengganu police chief Datuk Mohd Khairi Khairuddin, the unauthorised power usage caused an estimated monthly loss of $8,342 (RM36,000) to Tenaga Nasional Berhad (TNB), Malaysia’s sole electricity provider.
Yet another illegal mining syndicate busted in Terengganu for stealing RM36,000 worth of electricity per month.
What a dumb thing to do. This hurts the grid, raises rates, and gives mining a bad name.
Not all miners are criminals. Many of us build the industry the right way. pic.twitter.com/lOrnx7kDHl
— Azam Roslan (@azamR_X) May 1, 2025
The crackdown was carried out in collaboration with TNB’s Special Engagement Against Losses (SEAL) unit, which specialises in combating energy theft.
Although no arrests were made during the raids, all equipment was transferred to district police headquarters as part of an ongoing investigation.
Police say inquiries into the syndicate’s operations are continuing.
While Bitcoin mining remains legal in Malaysia, manipulating or bypassing the national power infrastructure is a criminal offense, punishable by up to five years in prison and/or a fine of $21,500 (RM100,000).
Malaysia Cracks Down on Illegal Cypto Mining
While digital currencies like Bitcoin are not recognised as legal tender, mining itself is not prohibited—so long as it is conducted using electricity obtained through legal channels.
This recent enforcement is part of a broader crackdown on unauthorised mining operations across the country.
In August 2024, Malaysian authorities arrested seven individuals linked to illegal crypto mining.
Akmal Nasrullah Mohd Nasir, Malaysia’s Deputy Minister for Energy Transition and Water Transformation, revealed to Malay Mail in July 2024 that illegal mining activities had cost the country at least $722 million (RM3.4 billion) in electricity losses between 2018 and 2023.
Watch as Malaysian authorities crackdown on #Bitcoin, literally, crushing 1,069 Bitcoin mining rigs. This was in response to miners stealing $2 mil USD worth of electricity in #Malaysia (@CNBC). Remember, #BTC is a fraud-enabling, highly speculative asset.https://t.co/QR3ulZq1hm
— Steve Hanke (@steve_hanke) July 20, 2021
Malaysia’s response to illicit mining has at times been strikingly symbolic.
In one high-profile incident, officials destroyed 985 confiscated Bitcoin mining machines using a steamroller—a vivid demonstration of the government’s zero-tolerance stance toward energy theft in the crypto space.
Southeast Asia Faces Surge in Illegal Bitcoin Mining
Illegal Bitcoin mining, which drains power directly from national grids, is becoming an escalating threat across East and Southeast Asia.
According to a 2025 report by the United Nations Office on Drugs and Crime (UNODC), international criminal organizations are increasingly drawn to Bitcoin mining in the region as a way to sidestep traditional anti-money laundering measures.
A Bloomberg report from the previous year also suggested that China’s 2021 ban on Bitcoin mining may have fuelled the spread of illicit mining operations into Southeast Asia.
The impact on Malaysia has been particularly significant.
In February 2025, an explosion in the city of Bandar Puncak Alam exposed a clandestine mining setup involving nine rigs.
Neighbouring Thailand has faced similar challenges.
Earlier this year, authorities dismantled a large-scale illegal mining operation involving 1,000 machines, which reportedly stole around $3 million worth of electricity from the national grid.
The growing prevalence of such operations underscores the broader vulnerabilities facing the region’s energy infrastructure amid the rise of illicit crypto activities.
