Malaysian police say they have broken up a suspected illegal Bitcoin mining network in Perak, arresting two men and seizing 73 mining machines that investigators allege were powered using stolen electricity.
The raids, carried out on Tuesday night under an operation codenamed Op Elektrik, targeted three properties in Tronoh and were led by officers from the Batu Gajah district police working alongside specialists from national power utility Tenaga Nasional Berhad (TNB).
Batu Gajah district police chief Assistant Commissioner Md Noor Aehawan Mohammad said the operation began at about 21:02 local time and uncovered what investigators described as Bitcoin mining activities supported by unauthorized electricity connections.
Two local men, aged 40 and 52, were detained at the scene to assist with the investigation. Police also confiscated 73 Bitcoin mining machines and related equipment believed to have been used to support the alleged mining operation.
According to police, inspections during the raids showed that all three premises had been used for Bitcoin mining. Technical checks by TNB later confirmed that electricity had been illegally tapped at two abandoned houses, while the third location involved was an unoccupied property.
Md Noor Aehawan said investigators found that the equipment had been wired into illegal power supply lines instead of properly metered connections, indicating what authorities believe to be a deliberate attempt to avoid paying for electricity.
The two suspects have been remanded for three days, from Wednesday to Friday, to allow further investigation.
Legal action and police appeal
Police say the case is being investigated under Section 427 of Malaysia’s Penal Code, which covers mischief including damage or loss linked to electricity theft, as well as Section 37(1) of the Electricity Supply Act 1990, which relates to interference with electrical installations.
Officers have urged the public to help identify similar activity, asking residents to report any suspected electricity theft or unauthorized cryptocurrency mining to the Batu Gajah district police operations room or to their nearest police station.
The latest raids form part of a wider enforcement drive against illegal cryptocurrency mining across Malaysia, where authorities say miners have repeatedly bypassed or tampered with meters to run energy-intensive operations at little or no cost.
Recent crackdowns across Malaysia
In May, police in Terengganu dismantled another suspected Bitcoin mining syndicate during an operation known as Op Letrik, following raids in the Hulu Terengganu and Marang districts.
Working jointly with TNB’s SEAL Team technical unit, officers seized 45 illegal Bitcoin mining machines from two locations – a residential property in Bukit Perpat and a commercial building in Wakaf Tapai.
At the time, Terengganu police chief Datuk Mohd Khairi Khairuddin said investigators believed the properties had been altered to bypass electricity meters, causing estimated monthly losses of about RM36,000 for TNB. Authorities also confiscated mining-related hardware valued at approximately RM225,000, although no arrests were announced in that case.
That investigation was pursued under Sections 379 and 427 of the Penal Code, together with Section 37 of the Electricity Supply Act 1990.
In a separate incident in February, another illegal mining operation was uncovered in Kuala Lumpur after firefighters responded to reports of an explosion and smoke at a house.
Emergency crews later found modified electrical wiring that had sparked a fire, before discovering several Bitcoin mining rigs inside the building. Investigators subsequently confirmed that the equipment had been running on electricity drawn through unauthorized connections, prompting a distinct police probe.
Heavy financial losses for power utility
TNB, Malaysia’s national electricity provider, has repeatedly underlined the financial damage caused by electricity theft tied to illegal cryptocurrency mining.
In 2024, the utility reported losses of more than 440 million Malaysian ringgit – around $101 million – attributed to stolen electricity used for illegal Bitcoin mining.
TNB also estimated that electricity theft linked to unauthorized cryptocurrency mining had resulted in losses of about $755 million between 2018 and 2023, underscoring the scale and persistence of the problem nationwide.
Global pressure on illicit mining
Authorities in other countries have launched similar campaigns against illegal mining operations where unmetered electricity use has put pressure on national power systems.
Iran has mounted repeated crackdowns on illicit cryptocurrency mining, while Venezuela has introduced a ban on crypto mining aimed at protecting its electricity grid from excessive demand generated by the energy-intensive activity.
