Authorities Crack Down on Illegal Bitcoin Mining Syndicate in Terengganu

Highlights:

• Malaysian authorities have busted 45 illegal Bitcoin mining machines worth RM225,000.
• The illegal mining operation cost TNB RM36,000 per month in stolen electricity.
• Illegal Bitcoin mining remains a significant issue for Malaysia’s power grid.

Authorities in Malaysia have dismantled a major Bitcoin mining syndicate operating in Hulu Terengganu and Marang districts. The operation, in collaboration with the National Electricity Company (TNB), focused on properties using stolen electricity to power mining rigs, said a local news outlet. Police seized 45 illegal Bitcoin mining machines during the raid, valued at the equivalent of RM225,000 (about $52,145).

Residential and commercial properties were illegally modified by the syndicate to draw power from the national grid. This made it possible to mine Bitcoin in a way that remained undetected yet brought in a considerable profit. The stolen electricity caused the illegal mining operation to cost TNB monthly losses of between RM36,000 (roughly $8,342).

Terengganu police dismantle illegal bitcoin mining ring stealing electricity . Raids seized 45 machines (RM225k) tied to RM36k/month losses. No arrests yet.

– 45 bitcoin mining machines worth RM225k confiscated in joint police-TNB raids.
– Syndicate caused RM36k…

— Bitcoin.com News (@BTCTN) May 1, 2025

The Rising Trend of Illegal Mining in Malaysia

Malaysia is becoming concerned with illegal Bitcoin mining. Numerous such operations have taken place in the country over the years, causing massive financial losses to TNB. According to TNB, it lost RM440 million ($101 million) to electricity theft tied to illegal mining activities from 2018 until 2024.

Bitcoin mining is legal in Malaysia, however, it is only permitted provided the electricity used to conduct it is acquired legally. Authorities had been stepping up efforts to crack down on illegal operations. Such illicit activities have recently seen the government intensifying its crackdowns, with the latest being the raid in Terengganu. Already, Malaysia’s crackdown has seen hundreds of mining machines confiscated, and a clear message has been sent to would-be offenders.

Economic Impact and Security Concerns

Bitcoin mining engaged illegally causes considerable losses to Malaysia’s national electricity provider and threatens the stability of the national power grid. Vast amounts of electricity are sucked by mining rigs adding load to already overstretched power resources. This could cause power outages or disruptions, which could affect the general public, which relies on a secure supply of electricity.

The latest raid reflects the economic damage caused by the illegal activities. Criminal syndicates that engage in illegal mining operations gain a lot through the evasion of expenses on electricity bills. The incentive for running such operations increases as the price of Bitcoin rises, making it harder to contain the problem.

Despite the crackdown, there’s no doubt that illegal Bitcoin mining is a lucrative activity for criminals. The power to make huge profits and bypass power meters still encourages the problem. This results in increasing enforcement actions by authorities to stop further electricity theft and safeguard the country’s power grid.

Legal Consequences for Illegal Mining

Malaysia has clarified that it will not tolerate tampered electricity meters or the stealing of power to run illegal Bitcoin mining operations. The legal consequences for those who engage in these activities are very severe. Offenders under the Electricity Supply Act 1990 can face imprisonment of up to five years or a maximum fine of RM 100,000 or both.

The raid in Terengganu, however, did not lead to any arrests as the investigation continues. Authorities are trying to identify the illegal mining operators and bring them to justice. Malaysia’s law enforcement is continuing to demonstrate its readiness to crack down on illegal Bitcoin mining and criminal syndicates profiting from the activity as the number of raids increases.