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Malaysia cracks down on electricity theft and seizes more than 75,000 cryptocurrency miners

2026-07-09 12:01:41
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Malaysia seized more than 75,000 cryptocurrency mining machines

Malaysian Deputy Home Minister Datuk Seri Shamsur Annuya revealed in the House of Commons on Wednesday that between 2022 and May 2026, Malaysian authorities seized more than 75,000 cryptocurrency mining equipment in more than 3000 raids across the country. According to Malaysia News Agency, these operations were jointly carried out by the Royal Malaysian Police, the national power company Tenaga Nasional Berhad (TNB) and local governments, and a total of 629 people were arrested.

Shamsul Anouya said that the Ministry of the Interior is expanding law enforcement measures, relying on intelligence collection and technical means to target suspicious hotspots in order to \"respond faster and take more precise actions.\" He attributed the continued existence of illegal mining to the strong demand for digital assets and the profit margins brought by fluctuations in cryptocurrency prices, while emphasizing that potential gains cannot be an excuse for criminal activities such as theft of electricity.

Shamsul Anuya pointed out that Malaysia allows the holding and trading of cryptocurrencies, but does not recognize them as legal tender. He added that mining is illegal when it involves \"unauthorized power connections, tampering with electricity meters, damaging power supply systems or operating without a license.\"

The Securities Commission of Malaysia oversees digital assets, while Bank Negara Malaysia oversees financial stability, payment systems and anti-money laundering compliance.

The focus of the crackdown is on electricity theft rather than cryptocurrency policy. Mining machines operate around the clock and continue to consume large amounts of electricity. Operators often bypass or tamper with electricity meters to cover up electricity consumption, resulting in power companies only discovering fraud when there is a difference between bills and actual electricity consumption.

The latest statistics extend law enforcement actions that have been going on for many years. At the end of 2025, Malaysia\'s Ministry of Energy said that about 14,000 illegal mining sites discovered in five years resulted in approximately US$1.1 billion in power losses. To this end, the Ministry has established a committee composed of the Ministry of Finance, Bank Negara Malaysia and TNB to specifically track down violators.

Law enforcement actions can be dramatic at times. Police have used road rollers to destroy seized mining machines many times, including destroying hundreds of equipment in 2024 and destroying about 1000 mining machines in similar operations in 2021.

Malaysia is not the only country in the region to take action. Law enforcement agencies in other regions have also launched crackdowns, ranging from the dismantling of multimillion-dollar mining gangs in Thailand to the arrest of people in Hong Kong for stealing electricity to power mining machines. There are countless such cases.

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