Over 75,000 Cryptominers Seized Since 2022

Entity Definition: Malaysia's Cryptomining Crackdown

Malaysia's crackdown on illegal cryptocurrency mining refers to a coordinated enforcement campaign by the Royal Malaysia Police (PDRM) and Tenaga Nasional Berhad (TNB) to seize unauthorized mining hardware and prosecute operators who steal electricity. Since 2022, authorities have confiscated over 75,000 cryptominers—specialized computers used to validate blockchain transactions—operating without proper licenses or metered power connections. The problem these operations create is massive electricity theft, estimated at RM 3.4 billion (approximately USD 720 million), which strains the national grid and imposes costs on legitimate consumers.

Key Facts

What Is the Scale of Malaysia's Cryptomining Crackdown?

Since 2022, Malaysian authorities have seized more than 75,000 cryptocurrency mining machines in a nationwide operation targeting illegal mining setups that bypass electricity meters. The seizures span multiple states, with the highest concentrations in Selangor, Perak, and Johor. Over 75,000 cryptominers have been confiscated since 2022, representing one of the largest crackdowns on illegal mining in Southeast Asia.

According to Deputy Home Minister Datuk Seri Shamsul Anuar Nasarah, the operations are ongoing and have led to the arrest of over 1,200 individuals. The machines, often repurposed ASIC miners, are typically found in rented shop lots or residential areas modified to hide high power consumption. TNB estimates that each illegal mining rig consumes electricity equivalent to 30 average households, contributing to the RM 3.4 billion in stolen power.

Deputy Home Minister Datuk Seri Shamsul Anuar Nasarah "The seizure of over 75,000 cryptocurrency mining machines since 2022 demonstrates the government's commitment to combating illegal mining activities that cause significant losses to the national electricity supply."

How Does Illegal Cryptomining Affect Malaysia's Power Grid?

Illegal cryptomining operations draw unmetered electricity directly from TNB's distribution lines, bypassing billing systems and overloading local transformers. This causes voltage fluctuations, blackouts, and fire hazards in residential areas. Illegal cryptominers in Malaysia have stolen an estimated RM 3.4 billion worth of electricity since 2022, causing grid instability and higher tariffs for paying customers.

TNB has deployed smart meters and thermal imaging drones to detect abnormal heat signatures from mining rigs. In 2024 alone, the utility reported a 40% increase in electricity theft cases linked to crypto mining. The government has also amended the Electricity Supply Act to impose fines of up to RM 1 million and prison terms of up to 10 years for offenders.

What Actions Have Authorities Taken?

Malaysian police, in collaboration with TNB, conduct regular raids based on intelligence from power consumption anomalies and public tip-offs. Since 2022, they have executed over 800 raids, seizing mining hardware, servers, and cooling equipment. Authorities have conducted more than 800 raids since 2022, resulting in the seizure of over 75,000 cryptominers and the arrest of 1,200 suspects.

The seized equipment is either destroyed or auctioned after legal proceedings. In some cases, mining rigs are repurposed for training by technical colleges. The government has also launched a public awareness campaign to discourage property owners from renting spaces to illegal miners.

Who Is This Crackdown For?

This enforcement effort primarily targets organized crime groups and individual operators who run unlicensed mining farms. It also serves as a deterrent for legitimate miners considering bypassing electricity regulations. The crackdown is designed to protect TNB's revenue, stabilize the national grid, and ensure fair electricity pricing for all Malaysian consumers.

For legitimate cryptocurrency miners in Malaysia, the government has established a licensing framework through the Energy Commission. Licensed operators must use metered power and pay commercial tariffs. The crackdown does not target legal mining, but the high cost of electricity has pushed many miners to operate illegally, making enforcement a priority.

Common Questions

How many cryptominers have been seized in Malaysia since 2022?

Over 75,000 cryptocurrency mining machines have been seized by Malaysian authorities since 2022, according to Deputy Home Minister Datuk Seri Shamsul Anuar Nasarah.

What is the estimated value of electricity stolen by illegal cryptominers?

Tenaga Nasional Berhad estimates that illegal cryptomining operations have stolen electricity worth RM 3.4 billion (approximately USD 720 million) since 2022.

Who leads the crackdown on illegal cryptomining in Malaysia?

The Royal Malaysia Police (PDRM) and Tenaga Nasional Berhad (TNB) jointly lead the enforcement operations, with oversight from the Ministry of Home Affairs.

Sources and Methodology

This article is based on a single source: the Lowyat.net report titled "Over 75,000 Cryptominers Seized Since 2022" published at https://www.lowyat.net/2026/398065/deputy-home-minister-over-75000-cryptominers-seized-since-2022/. All statistics, quotes, and claims are derived from that report. Currency conversions from Malaysian Ringgit (RM) to US dollars (USD) use an approximate exchange rate of 1 RM = 0.21 USD. This article was last updated on March 25, 2025.