Malaysian authorities seized over 75,000 cryptocurrency mining machines in more than 3,000 raids conducted between 2022 and May 2026, Deputy Home Minister Datuk Seri Dr Shamsul Anuar told parliament on Wednesday. The operations, coordinated with national utility Tenaga Nasional Berhad and the Royal Malaysia Police, resulted in 629 arrests. The crackdown targets illegal mining operations that steal electricity through unauthorized connections, meter tampering, and unlicensed setups, while cryptocurrency trading remains legal in Malaysia under the regulatory oversight of the Securities Commission Malaysia and Bank Negara Malaysia.
Malaysian Authorities Conduct 3,000+ Raids Targeting Illegal Mining Operations
Deputy Home Minister Datuk Seri Dr Shamsul Anuar disclosed the seizure figures while responding to a question in the Dewan Rakyat, the lower house of parliament, according to state news agency Bernama. The coordinated operations involved the Royal Malaysia Police, state utility Tenaga Nasional Berhad (TNB), and local authorities.
Shamsul Anuar stated that the Home Ministry is expanding its enforcement approach by relying on intelligence gathering and technology to identify likely hotspots before conducting raids, enabling authorities to "respond faster and take more precise action." He attributed the persistence of illegal mining to strong demand for digital assets and the profits available from volatile token prices, while emphasizing that potential gains do not excuse crimes such as stealing electricity to reduce operating costs.
Malaysia Permits Crypto Trading While Prohibiting Electricity-Theft Mining
Owning and trading cryptocurrency is permitted in Malaysia, though it is not recognized as legal tender, Shamsul Anuar said. Mining becomes illegal when it relies on "unauthorised electricity connections, tampering with meters, disrupting power supply systems or operating without the required licences," he added.
The Securities Commission Malaysia regulates digital assets, while the central bank, Bank Negara Malaysia, oversees financial stability, payments, and anti-money-laundering compliance.
Electricity Theft Drives Enforcement Focus on Mining Rigs
The crackdown focuses on electricity theft rather than cryptocurrency policy. Mining rigs operate around the clock and draw heavy, constant electrical loads. Operators frequently bypass or tamper with meters to conceal consumption, leaving utilities to detect the fraud only when billed usage diverges from actual consumption.
Malaysia Links $1.1 Billion Power Losses to 14,000 Illegal Mining Sites
The seizure tally extends a multi-year enforcement campaign. In late 2025, Malaysia's energy ministry linked approximately $1.1 billion in power losses to around 14,000 illegal mining sites uncovered over five years. The ministry established a committee involving the finance ministry, Bank Negara, and TNB to pursue offenders.
Enforcement actions have included public destruction of seized equipment. Police crushed seized rigs with steamrollers on multiple occasions, including hundreds of machines destroyed in 2024 and around 1,000 in a similar operation in 2021.
Malaysia is not alone in the region. Authorities elsewhere have mounted their own crackdowns, including a multimillion-dollar mining operation dismantled in Thailand and arrests in Hong Kong over electricity siphoned to power rigs.
FAQ
What did Malaysian authorities seize in their crypto mining crackdown between 2022 and May 2026?
Malaysian authorities seized over 75,000 cryptocurrency mining machines in more than 3,000 raids conducted between 2022 and May 2026, according to Deputy Home Minister Datuk Seri Dr Shamsul Anuar's statement to parliament on Wednesday. The operations resulted in 629 arrests.
Why is crypto mining illegal in Malaysia?
Cryptocurrency trading is legal in Malaysia, but mining becomes illegal when it relies on unauthorized electricity connections, meter tampering, disruption of power supply systems, or operation without required licenses, according to Deputy Home Minister Shamsul Anuar. The crackdown targets electricity theft rather than cryptocurrency policy itself.
How much money has Malaysia lost to illegal crypto mining operations?
In late 2025, Malaysia's energy ministry linked approximately $1.1 billion in power losses to around 14,000 illegal mining sites uncovered over five years. The ministry established a committee involving the finance ministry, Bank Negara Malaysia, and national utility TNB to pursue offenders.
