Malaysia has stepped up enforcement against illegal cryptocurrency mining after state utility Tenaga Nasional Berhadreported more than $1.1 billion in electricity losses since 2020.
Authorities say the scale of theft has turned illicit mining into a national infrastructure and criminal issue, prompting a coordinated, tech-driven response.
Drones, Sensors, and a Cat-and-Mouse Game
Enforcement agencies across Malaysia are now deploying drones fitted with thermal cameras to scan rooftops for abnormal heat signatures linked to mining rigs. Ground teams follow up using handheld sensors to detect irregular power consumption and pinpoint tampered connections.
Officials describe the situation as a cat-and-mouse game. Illegal miners increasingly use heat shields, CCTV systems, and even fake bird sounds to disguise the heat and noise generated by their equipment. Many operations are hidden in abandoned buildings or remote properties to avoid detection.
Despite these tactics, recent operations in late 2025 and early 2026 resulted in nearly 14,000 illicit sites being raided nationwide. In one January 2026 case in Teluk Intan, police seized 41 mining machines suspected of drawing power illegally.
Mining Is Legal, Power Theft Is Not
Cryptocurrency mining itself remains legal in Malaysia, provided operators properly register their activity and pay for electricity through legitimate channels. The crackdown targets miners who bypass meters or manipulate the grid, violating the Electricity Supply Act and provisions of the Penal Code.
Penalties are severe. Convictions for electricity theft can result in fines of up to 1 million Malaysian ringgit for non-domestic users, along with prison sentences of up to five years. Authorities say these punishments are meant to deter what they increasingly view as organized criminal activity rather than isolated violations.
Government Escalates With Task Force and Policy Review
In November 2025, the government formed a multi-agency task force involving the finance ministry, national police, and TNB to coordinate investigations and enforcement. As part of this effort, TNB has built a database of property owners and tenants suspected of involvement in electricity theft, allowing officials to monitor high-risk locations more closely.
At the policy level, officials are also reviewing broader options. Some lawmakers have floated the idea of banning crypto mining altogether, citing grid strain, energy volatility, and persistent abuse of the power system.
For now, Malaysia’s approach is clear: mining may be allowed, but stealing electricity to do it is being treated as a major economic crime.
