Malaysia to Shut Down 14,000 Bitcoin Mining Rigs Amid $1B Electricity Theft

Malaysia’s battle against illegal Bitcoin mining has escalated into a high-tech pursuit. 

Authorities are now deploying drones to sweep commercial blocks, neighborhoods, and abandoned buildings for unexpected heat signatures.

On the ground, police teams use handheld devices that detect abnormal electricity flow, while residents alert authorities after hearing strange noises.

In several cases, officers have traced the sounds to operators playing bird and jungle audio to mask the roar of industrial mining machines behind closed doors.

This intense monitoring shows how big the problem is. Over the past five years, more than 14,000 illegal Bitcoin mining sites have been found.

$1.1B in Power Losses

State-owned utility Tenaga Nasional Berhad (TNB) estimates that power theft tied to illegal Bitcoin mining has cost the country $1.1 billion since 2020. The losses surged this year, with nearly 3,000 new power-theft cases tied to mining reported by early October.

To put the damage into perspective, that stolen electricity could feed over 567,000 Malaysians for a full year. It could also power 373,000 average households for 12 months.

The scale of the siphoning has now forced Malaysia to treat the issue as a national economic threat.

Multi-Agency Task Force Moves In

In response, the government launched a new special committee on November 19. It brings together Bank Negara Malaysia, the Ministry of Finance, and TNB to coordinate efforts to identify, shut down, and prosecute illegal operations.

Deputy Energy Minister Akmal Nasrullah Nasir, who chairs the panel, warns that the danger extends beyond financial losses:

“The risk of allowing such activities to happen is no longer about stealing. You can actually even break our facilities. It becomes a challenge to our system.”

Nasir says the behavior of operators, including rapid relocation, elaborate security, and heat-shielding setups, points to organized criminal syndicates.

Inside Malaysia’s Hidden Bitcoin Mining Hubs

Illegal miners operate with surprising sophistication. Many rotate locations frequently, using vacant shop lots, abandoned houses, empty suburban storefronts, and quiet industrial warehouses.

Major abandoned structures have even been converted into mining factories. One example is ElementX Mall near the Strait of Malacca, which never recovered post-pandemic. Bitcoin miners quietly took over parts of the building in 2022. The operation only came to light after a TikTok video went viral.

In Sarawak, a mining firm previously turned a former logging yard into a large-scale facility. These efforts highlight how operators repurpose any space capable of hosting high-density machines.

Legal Mining Exists, But Officials Question Its Viability

Meanwhile, Bitcoin mining is legal in Malaysia if operators pay for their electricity and taxes. But Nasir believes the business model is inherently unstable due to Bitcoin’s volatility.

During the task force’s first meeting in November, members even discussed whether Malaysia should consider banning Bitcoin mining entirely.

Ultimately, the crackdown on Bitcoin miners has become one of the most sophisticated enforcement efforts in Asia, as Malaysia seeks to stop power theft before it undermines national infrastructure.