Malaysia Seizes $52,149 in Bitcoin Mining Equipment After Power Theft

Law enforcement in Malaysia has successfully dismantled a large-scale illegal Bitcoin mining operation that was covertly stealing electricity from the local power grid. The operation, uncovered during a joint effort called “Op Letrik,” involved police in Terengganu and Tenaga Nasional Berhad’s (TNB) Special Engagement Against Losses (SEAL) unit. The raids targeted two locations: a residential home in Bukit Perpat, Hulu Terengganu, and a commercial premises in Wakaf Tapai, marang.

During the raids, authorities discovered 45 Bitcoin mining machines and various other mining-related equipment, valued at approximately RM225,000, or roughly $52,149. The properties had been tampered with to bypass electricity meters, allowing the operation to run undetected while consuming significant power from the grid. TNB estimates that the illegal miners were stealing roughly RM36,000 (roughly $8343) worth of electricity per month.

Although no arrests were made during the raids, all equipment was seized and taken to the district police headquarters for further investigation. The case is being investigated under Sections 379 and 427 of the Malaysian Penal Code, which cover theft and mischief causing damage, as well as Section 37 of the Electricity Supply Act 1990. If convicted, those responsible could face up to five years in prison, fines reaching RM100,000, or both.

Illegal Bitcoin mining typically involves connecting powerful computers, known as mining rigs, to a tampered electricity supply, often bypassing official meters or tapping directly into power lines. Mining Bitcoin consumes enormous amounts of electricity because it requires powerful machines to run nonstop, solving complex mathematical puzzles while competing against other miners to validate transactions and earn rewards. As Bitcoin’s value climbs, so does the incentive for such illicit setups. With each mined Bitcoin potentially worth tens of thousands of dollars, the lure of high profits continues to attract bad actors. Illicit setups like these become especially profitable for operators when they don’t pay for the power they use.

Malaysia has emerged as a hotspot for illegal Bitcoin mining, with electricity theft becoming a widespread issue tied to the practice. Illegal mining activities have cost the national power utility over RM440 million (about $101 million) in losses between 2018 and 2024. Earlier this year, a mining operation in Kuala Lumpur was discovered after a fire broke out in a residential house on February 13. Firefighters found the blaze was caused by faulty wiring connected to illegal Bitcoin mining rigs. Inside, officials uncovered several machines and confirmed that the power supply had been tampered with. The growing frequency of such incidents has prompted a broader crackdown. Authorities have seized nearly $500,000 worth of mining-related equipment in recent enforcement actions. Officials say that while crypto mining only accounts for a small fraction of total electricity consumption, its impact is disproportionately large when theft is involved.

Across the globe, such illegal operations have been uncovered in countries like Russia, Iran, and Venezuela. Iranian authorities, for instance, seized over 230,000 illegal mining rigs in 2024 that were allegedly consuming the equivalent energy of an entire province. Meanwhile, in Venezuela and Russia, authorities were compelled to ban or impose stringent restrictions on crypto mining altogether to protect their fragile power infrastructure.