Malaysia Reveals Results of Crackdown on Illegal Crypto Mining Since 2022

As part of its ongoing efforts to tackle the issue of illegal cryptocurrency mining, the Malaysian government has reported remarkable progress. Since 2022, law enforcement agencies have conducted over 3,000 raids targeting illegal crypto-mining operations that exploit stolen electricity. By May 2026, authorities had confiscated a staggering total of 75,578 mining devices and apprehended 629 individuals involved in these illicit activities.

Strengthening Measures Against Illegal Mining

The Deputy Minister of Home Affairs, Datuk Seri Shamsul Anuar Nasarah, highlighted in parliament the intensified crackdown efforts across Malaysia. A total of 3,049 raids were executed nationwide during this period. The ministry remains committed to enhancing its monitoring capabilities and technology to better identify high-risk sites where illegal crypto-mining may occur.
He emphasized the importance of reinforcing collaboration in information sharing and coordinating law enforcement operations with other relevant agencies. Key partners include Malaysia’s national energy company Tenaga Nasional Berhad (TNB), the Energy Commission, and local authorities.

The Impact on Energy Systems

Illegal crypto-mining operations not only violate legal frameworks but also result in significant electricity thefts. This imposes substantial financial losses on energy-supplying companies like TNB. In December 2025, it was reported that unauthorized Bitcoin miners caused over $1.1 billion in damages to TNB alone over five years.
Additionally, these unauthorized activities threaten the stability of electricity supplies for residents in surrounding areas. However, investigations revealed no evidence linking police officers or local council representatives from Manjung to any previously reported unauthorized raids.

A Regional Perspective

This issue is not isolated to Malaysia alone; similar incidents have been recorded across other countries within the region. Recently, Thailand’s Department of Special Investigations confiscated more than 6,390 mining devices while estimating an electricity theft damage close to $28.5 million.
Moreover, market dynamics also play a role: following a June 2026 report by JPMorgan analysts indicating that nearly one-fifth of Bitcoin miners are operating at a loss due to decreased profitability; some operators may resort increasingly towards illicit methods for cost reduction.
As Malaysia continues its efforts against unlawful crypto-mining practices impacting both economic integrity and electrical infrastructure viability — such initiatives serve crucially towards ensuring sustainable growth within this rapidly evolving digital currency landscape without compromising societal welfare or national interests alike.