In Malaysia, over the past five years, illegal Bitcoin miners have inflicted significant damage on the national energy system—over $1.1 billion in losses were borne by Tenaga Nasional. During this period, authorities identified around 14,000 illegal mining sites, highlighting the scale of the issue. Additionally, since 2018, the number of electricity theft cases related to mining has increased by 300%.
Overview of the Illegal Mining Problem in Malaysia
The scale of illegal mining in the country is striking: by October 2025 alone, about 3,000 new cases of electricity theft were recorded. Such activities lead to substantial financial losses for energy companies and pose additional risks to the stability of the power grid.
Detection Methods and Features of Illegal Miners' Activities
To track down illegal miners, authorities actively use modern technologies: drones, thermal sensors, and handheld devices help identify abnormal electricity consumption. In some cases, miners tried to mask the noise of their equipment with speakers playing bird songs. They also display mobility and caution, moving between vacant buildings, using thermal insulation, and installing surveillance systems.
Authorities' Response and Measures Against Illegal Mining
In November 2025, an interagency committee was established to coordinate efforts against illegal operators, involving the Ministry of Finance, Bank Negara Malaysia, and Tenaga Nasional. It is headed by Deputy Minister of Energy Transition Akmal Nasrullah Mohd Nasir. In 2024, authorities arrested seven people for electricity theft and destroyed 985 Bitcoin mining setups. See also: Illegal Mining in Malaysia Causes Over $1 Billion in Losses in 5 Years
Legislation and Legal Status of Mining in Malaysia
Mining in Malaysia is permitted only with official grid connection and tax payment. However, officials express doubts about the effectiveness of current regulations and note that illegal miners often operate in an organized manner, making enforcement challenging.
Notable Cases and Examples of Illegal Mining
Among the most notable incidents are the establishment of a mining farm in the abandoned ElementX Mall and a site at a former timber yard in Sarawak, which was linked to the company Bityou.
Why This Matters
For miners in Russia, Malaysia's experience demonstrates how seriously authorities can address illegal mining and electricity theft. Increased oversight, adoption of new detection technologies, and stricter penalties could serve as an example for other countries. This underscores the importance of legal operations and transparency in energy consumption matters.
What to Do?
- Conduct mining only with official grid connection and full tax compliance.
- Monitor changes in legislation and control measures in your country.
- Assess the risks of illegal activities to avoid financial and legal consequences.
