Key facts
- Malaysian authorities seized over 75,000 cryptocurrency mining machines.
- The seizures occurred during more than 3,000 raids nationwide between 2022 and May 2026.
- The operations resulted in 629 arrests.
- Illegal mining is defined as using unauthorized electricity connections, tampering with meters, or operating without licenses.
- Authorities are enhancing enforcement with intelligence gathering and technology.
Malaysian authorities have confiscated over 75,000 cryptocurrency mining machines as part of a crackdown on illegal operations that steal electricity. The seizures, conducted between 2022 and May 2026 across more than 3,000 raids nationwide, also led to 629 arrests, according to Deputy Home Minister Datuk Seri Dr Shamsul Anuar.
These operations, carried out in collaboration with the national utility Tenaga Nasional Berhad and the police, target mining activities that rely on unauthorized electricity connections, tampered meters, or lack of proper licensing. While crypto trading is legal in Malaysia, the methods used by these miners are not.
Shamsul Anuar stated that the Home Ministry is enhancing its enforcement strategies by utilizing intelligence gathering and technology to identify potential hotspots for more rapid and precise action. He attributed the continuation of illegal mining to the strong demand for digital assets and the profitability of volatile token prices, emphasizing that potential gains do not justify criminal acts like electricity theft to reduce operational costs.
Malaysia permits the ownership and trading of cryptocurrencies, though they are not recognized as legal tender. The Securities Commission Malaysia regulates digital assets, while Bank Negara Malaysia focuses on financial stability and anti-money-laundering compliance. The enforcement actions are primarily focused on electricity theft, as mining rigs consume significant power, leading operators to tamper with meters to conceal their usage.
This recent tally extends a multi-year campaign against illegal mining. Previous reports have linked substantial power losses to numerous illegal mining sites uncovered over the past five years. Enforcement actions have sometimes been public, with police previously destroying seized mining rigs.