Malaysia Crypto Mining Crackdown: 13,000 Illegal Sites Exposed in Record Enforcement Blitz

Malaysian authorities just dropped the hammer on crypto mining's underground economy.

The Enforcement Numbers

Thirteen thousand illegal mining operations shut down in a single coordinated strike—the largest crypto mining enforcement action in the country's history. Authorities uncovered sophisticated operations siphoning power and bypassing regulations across multiple states.

Power Theft Epidemic

These unauthorized mining facilities were draining national power grids through illegal connections, costing utilities millions while operating outside regulatory oversight. The scale of electricity theft reveals just how profitable underground mining remains despite regulatory pressures.

Market Implications

While legitimate crypto operations continue unaffected, this crackdown demonstrates governments' growing sophistication in tracking and dismantling illegal mining infrastructure. Another reminder that in crypto, the biggest risks often come not from market volatility but from ignoring the rules—because apparently, some miners thought electricity was just another decentralized resource up for grabs.

13,827 Illegal Malaysia Crypto Mining Theft Found

Its Ministry of Energy confirmed that between 2020 and August 2025, a massive 13,827 premises were caught using electricity illegally to mine cryptocurrency. 

This major Malaysia crypto news is now dominating the entire market, especially because it shows how deeply miners were involved in tampering with electricity meters.

The national utility firm Tenaga Nasional Bhd (TNB) suffered losses of more than RM4.6 billion (US$1.11 billion) during this period. 

Many miners bypassed or modified meters to run heavy Bitcoin extracting machines without paying. This reveals the shocking scale of cryptocurrency fraud , and experts say this is one of the biggest power scam cases in Southeast Asia.

Government Forms Multi-Agency Task Force to Stop Electricity Fraud

According to The Star report on X, the Ministry of Energy Transition and Water Transformation has created a new multi-agency committee to stop scams like Malaysia Crypto Mining theft. 

This includes TNB, the police, MCMC, the anti-corruption agency, and other enforcement bodies. Even though there are no special laws, meter tampering and bypassing is illegal under the Electricity Supply Act. 

Perlis police also busted several Bitcoin harvesting setups recently, adding more focus to the growing problem of Malaysia crypto mining theft and highlighting how fast these operations are spreading.

Fraud Situation is Exploding: 32,000 Scam Cases in One Year

Along with illegal extracting, the country is also facing a major rise in online scams. Police recorded:

• Almost 32,000 online scam cases

• Nearly 12,000 arrests

• Losses of RM1.5 billion

In nationwide raids, more than 2,000 people were arrested for supplying or running mule accounts to MOVE scam money. Hundreds of these cases are already in court. 

Why This Is a Big Warning for Cryptocurrency and Energy Markets

This situation highlights several important things:

This is why the Ministry of Energy and law enforcement teams are now working closely to fight crypto-related power fraud.

Conclusion

With more than US$1.11 billion lost in mining theft, the government is now tightening control over regulations. The combination of power scams, online scams, mule accounts, and rising fraud cases shows how serious the challenge has become. The government’s tough action makes it clear that illegal  operations will no longer be ignored.

Disclaimer: This article is only for information, always do your own research before investing.