Malaysian authorities have launched a nationwide crackdown on illegal Bitcoin mining after the country’s power losses linked to miners exceeded an estimated $1.1 billion between 2020 and August 2025, according to utility records and media reports.
The push targets nearly 13,800 to 14,000 sites suspected of tapping power without paying. Actions included drone sweeps, meter inspections and site raids.
Task Force Begins Drone and Ground Cleanup
Based on the report, a multi-agency task force was formed, including the national utility, Tenaga Nasional Berhad (TNB), police and other regulators. Teams equipped with drones equipped with thermal imaging cameras and special meters have been used to spot heat signatures and unusual power consumption in warehouses, shuttered stores and even residential areas.
Bitcoin mining hardware has been seized in several operations, and arrests have been reported in at least a few cases where evidence of meter tampering was found.
Illegal Bitcoin Mining: Expected Losses and Figures
The scale is large. The report said losses amounted to about $1.1 billion (about 4.57 billion ringgit), and investigators said the number of illegal buildings discovered since 2020 was close to 14,000.
Authorities say mining-related power theft has risen sharply in recent years, with some sources noting a nearly 300% increase since 2018. Many operators choose low-cost hiding places and keep moving to avoid detection.
Legal and Policy Questions Loom
Bitcoin mining itself is not completely banned in Malaysia, but stealing power and bypassing meters is illegal under the Electricity Supply Act 1990. Authorities are taking stricter measures. Some lawmakers and energy officials have raised options for stricter licensing, smarter metering or even temporary bans on certain operations if the theft continues.
According to the report, these efforts are intended to protect grid stability and prevent long-term losses that would hurt utilities’ bottom lines.
Safety hazards and grid variations
Authorities say there are safety concerns beyond money. Improper connections or overloading lines increase the risk of short circuits and fires, and can damage transformers and other expensive equipment.
In some areas, local residents reported flickering lights and unstable supplies, which investigators linked to unusual mining discovered at nearby illegal mining sites. This technical burden makes enforcement more urgent.
What’s next
According to the report, enforcement will rely on a mix of traditional police forces and technologies such as drones, thermal scanning and smart meters. The immediate goal now is to shut down the rigs, confiscate the equipment and take legal action against operators who have taken power without paying. The long-term path could include clearer rules for legal miners and stricter monitoring of the grid as a whole.
Featured image from Pexels, chart from TradingView
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