Malaysia Cracks Down on Illegal Bitcoin Mining Linked to $1B Power Theft
Authorities formed a special committee in November 2024 to combat electricity theft by illegal Bitcoin miners, citing threats to Malaysia’s power grid from organized crime groups.
Malaysian authorities have reinforced enforcement against illegal Bitcoin mining operations responsible for $1 billion in stolen electricity over five years. In November 2024, a special committee was established to coordinate actions, prompted by concerns over organized crime's role and potential damage to the national power grid. This builds on earlier efforts that dismantled nearly 14,000 illicit rigs since 2020, following a 300% rise in power thefts between 2018 and 2024. State utility Tenaga Nasional Berhad reports the losses have severely strained infrastructure.
- Bitcoin mining: The process of validating Bitcoin transactions and adding them to the blockchain, often requiring substantial computing power and electricity.
- Electricity theft: The unlawful tapping or bypassing of electrical infrastructure to use power without payment, sometimes linked to energy-intensive crypto mining.