Bitcoin Mining Bust in Malaysia: A Continuous Crackdown
The Latest Takedown
Police Storm Illegal Cryptocurrency Mining Facility Said to Operate at a Cost of $8,000 Per Month, Yielding 45 Bitcoin Mining Machines
In the latest move against illegal activities, the Malaysian police have shut down another Bitcoin mining operation, this time in the Hulu Terengganu and Marang districts in the northeast part of the country.
According to sources like the Malay Mail, this joint operation between the law enforcement and Tenaga Nasional Berhad's (TNB) Special Engagement Against Losses (SEAL) unit resulted in the seizure of 45 Bitcoin mining machines worth around $52,145 (RM225,000), in addition to other equipment.
remark 1: Terengganu police chief Datuk Mohd Khairi Khairuddin pointed out that these syndicates have been operating from residential and commercial properties, illegally using electricity from the local grid.
The Cost of Illegal Operations
TNB estimates that these illegal mining operations have resulted in monthly losses of around $8,342 (RM36,000). The police chief emphasized that no arrests were made during the crackdown, with all seized items taken for further investigation.
remark 2: It's worth noting that Bitcoin mining itself is legal in Malaysia, but tampering with grid electricity is punishable by up to 5 years in prison or a fine of up to $21,500 (RM100,000).
Crypto Mining Crackdowns Across Southeast Asia
Illegal Bitcoin mining operations, which consume large amounts of energy from national grids, have been increasingly problematic in East and Southeast Asia. According to the United Nations Office on Drugs and Crime (UNODC) report from 2025, international criminal groups operating in the region are attracted to crypto mining due to its ability to circumvent anti-money laundering laws compared to traditional crimes.
As an example, Thailand has also experienced high-profile crypto mining crackdowns, such as one involving 1,000 machines that allegedly stole $3 million from the nation's grid earlier this year.
remark 3: To confront this issue, Malaysia has developed a regulatory framework, treating cryptocurrencies as securities under the Capital Markets and Services Act. The country has also strengthened oversight through 2024 AML guidelines and 2025 amendments.
Malaysia's Experience with Crypto Mining
In February 2023, an explosion in Bandar Puncak Alam city, Malaysia, revealed a nine-rig illegal Bitcoin mining operation. By July 2024, Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir told the Malay Mail that illegal crypto mining had cost the country at least $722 million (RM3.4 billion) in electricity costs between 2018 and 2023.
The Malaysian government has shown a commitment to combating illegal crypto mining, as evidenced by their brutal tactics like crushing mining rigs with steamrollers and prosecuting miners responsible for significant losses.
In conclusion, illegal crypto mining has become a pressing concern in Southeast Asia, causing real-world consequences for countries like Malaysia, and prompting efforts to strengthen regulatory frameworks and enforcement actions to combat the issue.
- The seizure of 45 Bitcoin mining machines worth around $52,145 in a recent operation in Malaysia highlights the continuous crackdown on illegal Bitcoin mining.
- In addition to Bitcoin mining machines, other equipment was also seized during the joint operation between the Malaysian police and Tenaga Nasional Berhad's (TNB) Special Engagement Against Losses (SEAL) unit.
- The Terengganu police chief, Datuk Mohd Khairi Khairuddin, stated that these syndicates have been operating from residential and commercial properties, illegally using electricity from the local grid.
- Bitcoin mining itself is legal in Malaysia, but tampering with grid electricity can lead to penalties such as up to 5 years in prison or a fine of up to $21,500.
- Malaysia has developed a regulatory framework, treating cryptocurrencies as securities under the Capital Markets and Services Act, to combat illegal crypto mining.
- The Malaysian government has shown a commitment to combating illegal crypto mining, with examples including crushing mining rigs with steamrollers and prosecuting miners responsible for significant losses.
