A crackdown on illegal cryptocurrency mining in Malaysia has revealed extensive power theft and ties to organized crime across Southeast Asia. In Johor, Malaysia's southern state, police raided four rented locations on July 22 and 23, 2026, where 71 cryptocurrency-mining machines had been operating nonstop for about a month. Authorities arrested three suspects and confiscated computers, routers, vehicles, and mining equipment.

Johor police chief Ab Rahaman Arsad reported that the syndicate bypassed electricity meters, causing an estimated loss of €14,500 ($16,600) in roughly one month. The mining operations were believed to generate monthly revenues between €17,200 and €21,500.

Between 2020 and 2025, Malaysia's national utility, Tenaga Nasional Berhad (TNB), identified nearly 14,000 premises involved in electricity theft for cryptocurrency mining. Recorded cases rose from 610 in 2018 to 2,397 in 2024, according to Malaysia's Energy Ministry, which has labeled illegal mining a serious threat to public safety, economic stability, and the national electricity system.

Sonny Zulhuda, associate professor at the International Islamic University Malaysia, stated, "In Malaysia, thousands of incidents have triggered investigations into illegal mining for cryptocurrency purposes."

US authorities have also taken action against crypto-related crimes, seizing Bitcoin valued at approximately $15 billion from wallets linked to Prince Group chairman Chen Zhi, describing the assets as proceeds of fraud and money laundering.

Malaysia has enacted several laws to combat illegal cyber activities, including the Cyber Security Act 2024, which protects the National Critical Information Infrastructure, and the Cybercrimes Act 2026, aimed at addressing digital system misuse and abuse.

Experts note enforcement challenges remain due to limited legislative preparedness and agency capabilities, despite Malaysia's rapid digital infrastructure development. The focus, they say, should be on ensuring miners bear the full economic cost of electricity use without shifting risks and costs to the public.

This growing issue poses significant risks to electricity security, economic sustainability, competition, and government revenue.

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