Malaysian Authorities Seize 75,578 Crypto Mining Rigs Amid $1.1B Power Theft

3 hour ago 2 sources neutral

Key takeaways:

  • Malaysia's multi-year crackdown signals intensifying Southeast Asian mining risks, potentially relocating hash power to other jurisdictions.
  • Electricity theft losses may spur global regulatory tightening, reducing illicit mining and pressuring BTC's decentralization.
  • Energy-intensive proof-of-work coins face mounting headwinds, potentially benefiting proof-of-stake assets.

Malaysian law enforcement has seized 75,578 cryptocurrency mining machines and arrested 629 individuals in 3,049 raids conducted between 2022 and May 2026, Deputy Home Minister Datuk Seri Dr. Shamsul Anuar Nasarah revealed to parliament on Wednesday.

The coordinated operations by the Royal Malaysian Police, Tenaga Nasional Berhad (TNB), the Energy Commission, and local councils targeted illegal electricity theft linked to clandestine mining operations. While owning and trading crypto is legal under local regulations overseen by the Securities Commission Malaysia, miners who bypass meters, tamper with connections, or operate without licenses are charged under the Electricity Supply Act.

Losses from illegal power consumption have soared. TNB reported that between 2020 and August 2025, about 14,000 locations caused more than 4.6 billion ringgit ($1.1 billion) in losses, with cases jumping 300% from 2018 to 2024. The minister attributed the persistence of such crimes to the lure of digital asset profits, but stressed that commercial gain does not mitigate the harm to public grids and communities.

To improve enforcement, the ministry plans to deploy AI and predictive technology to identify high-consumption hotspots, enabling a “faster and more precise” response. Similar crackdowns have occurred elsewhere in Southeast Asia, including Thailand and Hong Kong.

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