Massive Scale of Illegal Operations Revealed
Authorities in Malaysia have launched their most aggressive crackdown to date against illegal Bitcoin mining. The operation was deployed following the discovery of an estimated $1.1 billion in stolen electricity from the national grid since 2020.
The information, revealed on December 3rd, indicates that at least 14,000 illegal Bitcoin mining sites have been operating in Malaysia, siphoning power from the state-owned utility Tenaga Nasional (TNB) over the past five years. This massive theft has caused widespread strain on infrastructure and led to serious public safety concerns.
Advanced Detection Methods Deployed
The sophistication and level of these illegal operations forced authorities to turn to advanced detection methods. Malaysian security teams are deploying thermal imaging drones to identify abnormal heat signatures in hidden mining farms. Additionally, they are using handheld sensors to help trace irregular power loads in residential and commercial areas.
Criminal Syndicates Implicated in Illegal Bitcoin Mining
Miners are also implementing extreme measures to evade detection. For example, they install rigs in abandoned buildings, cover windows with heat shields, and even play looping nature recordings to mask the constant whir of the mining equipment. CCTV cameras and improvised security systems were found at several sites, underscoring the level of planning behind these operations.
TNB is coordinating a multi-agency hunt with the national police, the Malaysian Anti-Corruption Commission, and the Communications and Multimedia Commission. For technological support, the utility company has created a database of properties suspected of electricity theft and is currently testing smart meters and analytical tools capable of detecting consumption spikes in real-time.
Malaysian authorities suspect that the organization and extensive setup of the mining farms do not correspond only to small-scale operators looking for cheap power, but point to the possible involvement of criminal syndicates.
Debate Over Total Mining Ban Reignited
While cryptocurrency mining remains a legal activity in the country, tampering with electricity meters is a criminal offense. The growing surge in illegal Bitcoin mining in Malaysia has reignited a political debate, leading some officials to openly consider a total ban on mining, citing concerns about grid instability and public safety risks.