Stealing Over $1 Billion in Electricity, Malaysian Bitcoin Miners Face Strict Crackdown

By Ryan Weeks, Kok Leong Chan, Netty Idayu Ismail, Bloomberg

Translated by Chopper, Foresight News

In Malaysia's hotspots for illegal cryptocurrency mining, the hunt begins from the air. Drones hover above rows of shop houses and abandoned buildings, scanning for abnormal heat signatures—the telltale thermal signals of operating mining rigs. On the ground, police officers use sensors to detect irregular electricity consumption. Sometimes, detection methods are more rudimentary: residents report strange bird calls, only for police to arrive and discover that nature sounds were being deliberately played to mask the roaring hum of machines behind closed doors.

Together, these tools form a mobile surveillance network aimed squarely at cracking down on illegal Bitcoin mining.

An official inspects mining equipment after a Bitcoin mining raid in July 2024

The targeted mining operations are highly cautious: frequently relocating between vacant storefronts and derelict buildings, installing insulation to conceal the thermal radiation from running equipment; securing entry and exit points with CCTV, heavy-duty security systems, and barriers made of broken glass to deter intruders.

This is the ongoing cat-and-mouse game between Malaysian authorities and Bitcoin miners. Over the past five years, Malaysia has shut down approximately 14,000 illegal mining sites. According to data from the energy ministry, state-owned power company Tenaga Nasional (TNB) has suffered losses of up to $1.1 billion due to electricity theft, a trend that continues to intensify. In early October this year, as Bitcoin prices hit an all-time high, authorities had already recorded around 3,000 electricity theft cases linked to mining activities.

Bitcoin reached a record price of $126,251 in October 2025, followed by a sharp decline in cryptocurrency prices

Now, Malaysia is ramping up its crackdown. On November 19, the government established a cross-agency special committee comprising members from the Ministry of Finance, Bank Negara Malaysia, and the national energy group. This task force will coordinate targeted operations against illegal mining operators.

"The risks of allowing such activities go beyond mere electricity theft," said Akmal Nasrullah Mohd Nasir, Deputy Minister of Energy Transition and Water, who also chairs the committee. "These operations could even damage our power infrastructure and pose serious challenges to the grid system."

Bitcoin mining is essentially a computing power race: rows of specialized equipment perform trillions of calculations per second in hopes of successfully validating transactions and earning Bitcoin rewards.

Bitcoin mining is big business. Global Bitcoin mining consumes more electricity than entire countries like South Africa or Thailand. According to the Cambridge Centre for Alternative Finance, over 75% of Bitcoin mining activity is now concentrated in the United States. Malaysia’s share in the industry is less clear: in January 2022, it accounted for 2.5% of global computing power, but the latest Cambridge research has not released updated figures.

What is certain is that Malaysian miners excel at repurposing unusual spaces for mining operations.

Overlooking the Strait of Malacca, the ElementX shopping mall—a massive complex—has remained nearly deserted since the pandemic, never recovering. Today, much of the mall still resembles a construction site, with exposed concrete floors and unshielded wiring. In early 2022, it welcomed an unusual tenant: Bitcoin miners. It wasn’t until early 2025, when a TikTok video exposing the operation went viral, that the mining equipment was finally removed.

Hundreds of miles away in Sarawak, East Malaysia, similar hidden mining sites exist. Bloomberg previously reported that a company called Bityou set up a mining facility at an old logging site. The company did not respond to requests for comment on this story.

In Malaysia, Bitcoin mining is legal as long as operators obtain electricity legally and pay taxes accordingly.

But Akmal disagrees. During the special committee’s first meeting on November 25, members discussed whether to recommend a complete ban on Bitcoin mining.

"Even if mining operations are compliant, the extreme volatility of the market they operate in remains a major challenge," he noted. "I don't believe any mining company can currently be considered 'successfully operating' in a legitimate sense."

He further stated that the sheer number of illegal Bitcoin mining sites and the operational patterns of those involved suggest organized criminal involvement.

"These activities are clearly orchestrated by criminal syndicates," Akmal said. "The mobility seen in frequently moving mining rigs across different locations indicates a well-established modus operandi."