Malaysia's Illegal Crypto Mining Crackdown Sees 75,578 Machines Seized and 629 Arrested Since 2022

Malaysia's Crypto Mining Raids Cross A Major Milestone

Malaysia's police and power utility have pulled more than 75,000 cryptocurrency mining machines out of illegal operations since 2022, marking one of the region's largest sustained crackdowns on electricity theft tied to digital currency mining.

Deputy Home Minister Datuk Seri Dr Shamsul Anuar Nasarah told the Dewan Rakyat this week that 3,049 raids carried out since 2022 have led to 629 arrests and the seizure of 75,578 machines, figures current as of May 2026.

Why Are Authorities Turning To Technology Instead Of Just Raids

The scale of the problem has pushed enforcement agencies to rethink how they hunt down illegal operators.

Rather than relying purely on tip-offs and physical sweeps, the Home Ministry is now leaning on data and intelligence work to flag likely hotspots before officers even show up.

Shamsul explained the shift in parliament:

"The Home Ministry (KDN) is stepping up its enforcement strategy by working with agencies such as TNB, while boosting intelligence gathering and technology use to identify potential hotspots before conducting operations."

He added that this approach is "essential to ensure we can respond faster and take more precise action."

The question came from Datuk Siti Zailah Mohd Yusoff, who pressed the ministry on why prosecutions have lagged behind the sheer number of raids conducted against power thieves.

Is Owning Crypto Even Illegal In Malaysia

Buying, selling and holding cryptocurrency is completely legal in Malaysia.

The issue is not about the asset itself but how some people power the machines that mine it.

Shamsul was clear on this distinction:

"While cryptocurrency ownership and trading are permitted in Malaysia, it is not recognised as a legal tender."

Digital assets fall under the watch of the Securities Commission Malaysia, governed through the Capital Markets and Services framework, while Bank Negara Malaysia keeps an eye on financial stability, payment systems and anti-money laundering compliance.

Mining crosses into criminal territory only under specific conditions.

As Shamsul put it:

"Cryptocurrency mining activities are considered illegal when they involve unauthorised electricity connections, tampering with meters, disrupting power supply systems or operating without the required licences."

Since Malaysia has no standalone law targeting crypto mining specifically, offenders are instead charged under the Electricity Supply Act 1990 for meter tampering or bypassing supply systems, and under Section 427 of the Penal Code for mischief where applicable.

Why Mining Rigs Are Such A Tempting Target For Power Thieves

Mining hardware runs around the clock and draws enormous, constant loads, which is exactly why it has become a magnet for electricity theft.

Operators frequently tamper with meters to mask real consumption, a practice that inflates costs across the grid and can destabilise supply for ordinary homes and businesses nearby.

TNB has responded by rolling out smart meters capable of flagging tampering or abnormal usage patterns in real time, giving investigators a head start on building lists of suspect properties.

How Much Has This Actually Cost Tenaga Nasional

The financial damage has been substantial.

TNB data shows electricity theft linked to crypto mining surged by roughly 300 per cent between 2018 and 2024, with detected cases climbing from 610 to 2,397 over that period.

Across around 14,000 locations between 2020 and August 2025, illegal power consumption by miners cost the utility more than 4.6 billion ringgit, close to $1.1 billion.

Shamsul pointed to a familiar driver behind the persistence of this activity, strong demand for digital assets and the lure of profits from price swings.

But he was firm that financial gain offers no excuse, noting that illegal mining remains a crime that burdens power companies and, ultimately, paying customers.

What Happened With The Manjung Collusion Allegations

Separately, lawmaker Datuk Ngeh Koo Ham raised questions in parliament about a specific hotspot, Manjung, Perak, where 347 raids between 2022 and June 2025 resulted in 93 arrests and the seizure of 6,913 mining machines.

Ngeh asked whether any police officers, TNB staff or Manjung Municipal Council employees had been arrested for allegedly colluding with illegal miners in the area.

Shamsul addressed the allegations directly, stating investigations had turned up no evidence implicating any of these parties:

"Regarding allegations that police personnel, TNB employees and Manjung Municipal Council workers were involved in collusion, investigations conducted so far found that none of these parties were involved."

The Legal Trail Behind Every Case

Enforcement against illegal mining does not rely on a single law.

Police pursue mischief-related charges under Section 427 of the Penal Code alongside other provisions depending on case specifics, while electricity theft itself is handled under Section 37 of the Electricity Supply Act 1990, with TNB working alongside police to recover losses from stolen power used to run mining equipment.