Malaysian Police Raid an Illegal Bitcoin Mining Syndicate

The Malaysian police carried out a raid on an illegal Bitcoin mining syndicate operating in the Hulu Terengganu and Marang districts on April 30.

The Malaysian police have reportedly raided an illegal Bitcoin (BTC) mining syndicate operating in the Hulu Terengganu and Marang districts.

The syndicate, which was based in the northeastern region of the country, is said to have been using stolen electricity to power its Bitcoin mining activities.

According to a report by a local news outlet, the raids took place at two separate locations—one in Bukit Perpat, Hulu Terengganu, and the other in Wakaf Tapai, Marang.

The operation, which was carried out by police in collaboration with Tenaga Nasional Berhad’s (TNB) Special Engagement Against Losses (SEAL) unit, led to the seizure of 45 Bitcoin mining machines, valued at approximately $52,145 (RM225,000).

In addition to the mining rigs, police also confiscated various other pieces of equipment used by the syndicate, such as routers, switches, and network cables.

At the time of the operations, no arrests were made. However, police are continuing their investigations into the illegal mining activities.

Terengganu Police Chief Datuk Mohd Khairi Khairuddin confirmed the raids and said further inquiries are underway.

The report adds that the unauthorized mining rigs had been stealing electricity valued at $8,342 (RM36,000) each month from the national electricity provider.

The syndicate had managed to avoid detection by operating out of both residential and commercial properties while tapping into the power supply illegally.

The chairman of TNB’s (SEAL) unit, Yusrizal Yuso, noted that the syndicate had set up sophisticated wiring systems to divert electricity to their mining rigs.

Illegal mining in Malaysia is a criminal offence and convicts face up to five years in prison, fines of up to $23,172.68 (RM100,000), or both.

Although cryptocurrencies are not recognized as legal tender in Malaysia, the Southeast Asian country does not view Bitcoin mining as illegal, but it has to be done with legally sourced electricity.

This is not the first time Malaysian authorities have taken action against illegal crypto-mining operations.

In August, seven individuals were arrested in connection with a large-scale illegal Bitcoin mining operation in the southeastern part of the country.

The Deputy Energy and Mineral Resources Minister, Awang Hashim, had previously disclosed that miners using illegal energy sources had cost the country a staggering $723 million (RM3.2 billion) between 2018 and 2023.

In previous instances, Malaysian authorities have taken a hard stance by destroying 985 illegal Bitcoin mining machines using a steamroller, highlighting their zero-tolerance policy towards the theft of electricity.

In related news, the United States continues to spearhead the shift toward more sustainable energy sources in Bitcoin mining.

North America now contributes to over 80% of all sustainable Bitcoin mining activity, showcasing significant progress in adopting renewable and low-carbon energy options.

This trend reflects a growing commitment to reducing the environmental impact of crypto mining, positioning the U.S. as a central figure in the global transition to greener mining practices.