Malaysia says it seized 75,000 crypto miners in power-theft raids
Officials told parliament that more than 3,000 raids since 2022 have led to 629 arrests tied to illegal crypto mining operations.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Malaysia is escalating a crackdown on crypto mining operations accused of stealing power from the national grid. For investors, the case is a reminder that crypto mining economics depend heavily on electricity costs, and regulators are targeting operators that try to lower those costs illegally.
Deputy Home Minister Datuk Seri Dr Shamsul Anuar told Malaysia’s parliament on Wednesday that authorities seized more than 75,000 cryptocurrency mining machines in nationwide operations from 2022 through May 2026, according to state news agency Bernama. He said the actions covered more than 3,000 raids and resulted in 629 arrests.
The operations involved the Royal Malaysia Police, national utility Tenaga Nasional Berhad, known as TNB, and local authorities, Shamsul Anuar said in response to a question in the Dewan Rakyat, Malaysia’s lower house of parliament.
Crypto mining is the process of using specialized computers to help secure some blockchain networks and process transactions. Miners receive crypto rewards when they successfully add new blocks to a network, but the machines can use large amounts of electricity because they often run continuously.
That power bill is central to the business model. If an operator avoids paying for electricity through illegal connections or meter tampering, the cost savings can make an otherwise unprofitable site attractive. Malaysian officials are focusing on that conduct, rather than treating all crypto activity as illegal.
Crypto trading is allowed, illegal power use is not
Shamsul Anuar said owning and trading cryptocurrency is allowed in Malaysia, although crypto is not treated as legal tender. He said mining becomes unlawful when operators use unauthorized power connections, tamper with meters, interfere with electricity systems or run sites without required licenses.
The Securities Commission Malaysia oversees digital assets in the country, while Bank Negara Malaysia, the central bank, handles financial stability, payments and anti-money-laundering oversight, according to the minister.
Shamsul Anuar said the Home Ministry is broadening its enforcement strategy by using intelligence gathering and technology to identify suspected illegal mining locations before raids. He linked the continued activity to demand for digital assets and the profit potential created by volatile token prices, while saying those factors do not justify crimes such as electricity theft.
A long-running enforcement push
The latest figures add to a multi-year campaign against illegal mining sites in Malaysia. In late 2025, Malaysia’s energy ministry connected roughly $1.1 billion in electricity losses to about 14,000 illegal mining sites found over five years, according to earlier reporting from Decrypt.
That effort included a committee involving the finance ministry, Bank Negara Malaysia and TNB to pursue offenders, Decrypt reported.
The issue has drawn public attention before. In 2024, Malaysian police destroyed hundreds of Bitcoin mining rigs with a steamroller as part of a broader campaign against electricity theft tied to mining activity, according to Decrypt.
For the crypto market, Malaysia’s actions do not change the legal status of trading digital assets in the country. They do show how governments may separate crypto ownership from the physical infrastructure behind mining, especially when that infrastructure strains utilities or relies on stolen electricity.
This story draws on original reporting from Decrypt.
