Malaysia Seizes Over 75,000 Crypto Mining Rigs

Malaysia has significantly intensified its crackdown on illegal cryptocurrency mining operations powered by stolen electricity. Since 2022, authorities have carried out 3,049 enforcement raids, seizing 75,578 cryptocurrency mining rigs and arresting 629 individuals. The figures, updated through May 2026, were presented to Parliament by Deputy Home Affairs Minister Datuk Seri Dr. Shamsul Anuar Nasarah.

The nationwide operation involved the Royal Malaysia Police, the national electricity provider Tenaga Nasional Berhad (TNB), the Energy Commission, and local authorities. Their primary objective is to combat electricity theft used to power cryptocurrency mining equipment.

Member of Parliament Datuk Siti Zailah Mohd Yusoff questioned the relatively low number of prosecutions against individuals involved in electricity theft. In response, Shamsul said authorities will increasingly rely on intelligence sharing and advanced technologies to identify high-risk locations, aiming to make future enforcement efforts faster and more effective.

While owning and trading cryptocurrencies is legal in Malaysia, digital assets are not recognized as legal tender. The cryptocurrency market is regulated by the Securities Commission Malaysia, while Bank Negara Malaysia oversees financial stability and anti-money laundering measures.

Cryptocurrency mining itself is also legal. However, operators break the law when they use illegal electricity connections, tamper with power meters, interfere with the electrical grid, or operate without the required permits. As Malaysia has no dedicated legislation governing crypto mining, offenders are prosecuted under the country's Electricity Supply Act.

According to the government, illegal mining operators frequently manipulate electricity meters to conceal their actual power consumption. This practice causes significant financial losses and can undermine the reliability of electricity supplies for both households and businesses.

Shamsul also addressed previous reports regarding raids in Manjung, Perak, stating that investigators found no evidence linking police officers, intermediaries, or local government employees to the illegal operations.

TNB estimates that electricity theft cases related to cryptocurrency mining increased by nearly 300% between 2018 and 2024, rising from 610 to 2,397 incidents. The company also reported losing more than 4.6 billion Malaysian ringgit (approximately US$1.1 billion) due to illegal electricity consumption at around 14,000 locations between 2020 and August 2025. Investigators are continuing to identify suspicious properties, while TNB is deploying smart electricity meters capable of detecting tampering and unusual consumption patterns.