The Malaysian police recently dismantled an illegal Bitcoin mining farm operating at two locations in the Hulu Terengganu and Marang areas, located in the northeast of the country. Although there were only 45 mining machines, this criminal group caused damages of over 8,000 USD/month (approximately 36,000 RM) to the national electricity company Tenaga Nasional Berhad (TNB).
Incident details:
Police seized:
45 Bitcoin mining machines, with an estimated total value of 52,145 USD (225,000 RM).
Some other electrical devices supporting mining operations.
According to Terengganu Chief of Police – Datuk Mohd Khairi Khairuddin, the individuals had stolen electricity from the national grid, operating at residential and commercial facilities.
The raid was coordinated with the TNB SEAL unit – the special force against electricity loss.
No one was arrested on the spot, but all equipment was confiscated for further investigation.
Legal situation in:
Mining Bitcoin is legal, but stealing electricity is a serious criminal offense.
Violators may face:
Up to 5 years of imprisonment, and/or
Fines of up to 21,500 USD (100,000 RM).
Malaysia and the issue of 'illegal mining'
This incident is just a small part of a larger picture:
From 2018 to 2023, Malaysia has suffered at least 722 million USD (3.4 billion RM) in losses due to illegal coin mining activities, according to the Minister responsible for energy transition and water resources Akmal Nasrullah Mohd Nasir.
Many international criminal organizations have exploited the lax regulatory environment in Southeast Asia to relocate coin mining activities to this region, especially after China completely banned mining activities since 2021.
In early 2025, an explosion in Bandar Puncak Alam revealed an underground mining 'workshop' with 9 rigs using stolen electricity.
Not only Malaysia – The Southeast Asian region is under pressure.
Thailand has also witnessed many major busts:
The most recent incident involved 1,000 mining machines, causing a loss of 3 million USD in electricity from the national grid.
Reports from the United Nations state:
Criminal groups are viewing Bitcoin mining as an effective money laundering tool due to its anonymity and difficulty in tracing compared to traditional forms of crime.
Connecting to the crypto market:
The increase in illegal coin mining activities shows the economic appeal of the mining industry – especially when Bitcoin prices are high. However, it also poses significant challenges for countries, particularly in terms of electricity management, law enforcement, and energy security.
For users and investors on platforms like Binance, these developments serve as a reminder that participating in crypto must be legal, transparent, and comply with local laws, otherwise severe consequences will follow.
Risk warning: Investing in and mining cryptocurrency carries high risks, especially if local laws are not followed. This article aims to provide information and is not investment advice. Users should carefully consider before participating.
