Illegal <a href="https://www.cryptoknowmics.com/news/does-crypto-mining-pose-double-taxation-risks/" target="_blank" rel="noopener">crypto mining</a> operators in Malaysia have stolen an astounding $723 million worth of electricity from 2018 to 2023, as revealed by Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir. This substantial theft has severely impacted Malaysia's state-controlled power operator, Tenaga Nasional Berhad, and local communities.
<h2>Seizure of Equipment</h2>
[embed]https://twitter.com/akmalnasir/status/1810992234885767205[/embed]

In an event <a href="https://www.malaymail.com/news/malaysia/2024/07/10/rm34b-down-the-drain-bitcoin-mining-blamed-for-massive-electricity-theft-since-2018/143279" target="_blank" rel="nofollow noopener">highlighting</a> the disposal of 2,022 seized items valued at approximately $467,000, including Bitcoin mining machines and electrical equipment, Nasir outlined the extensive efforts to combat illegal mining. These operations typically bypass registration with authorities and manipulate electricity meters or divert power directly from lines to avoid detection.
<h2>Detection and Enforcement</h2>
Despite these evasive tactics, energy supply companies have developed methods to identify unusual energy consumption patterns, allowing officials to pinpoint illegal activities. Nasir explained how these detection techniques led to the significant October 2022 operation where over 2,000 items were confiscated. This enforcement is part of a broader effort to safeguard the integrity of the country's energy supply.
<h2>Legal and Environmental Concerns</h2>
While cryptocurrency mining itself isn't illegal in Malaysia, the theft of electricity to power these operations is a criminal offense. This distinction was clarified by Malaysia’s Universiti Teknologi MARA in December 2022. The Malaysian government has been proactive in addressing this issue since at least August 2019, ensuring that seized equipment is disposed of, sometimes even crushed by steamrollers.
<h2>Ongoing Efforts and Broader Impacts</h2>
Nasir emphasized that curbing illegal mining activities is a priority for his ministry, alongside increasing Malaysia’s renewable energy sources. Additionally, Malaysia is cracking down on unregistered cryptocurrency exchanges. In May of last year, the Securities Commission Malaysia ordered Huobi Global to cease operations due to non-compliance with registration requirements. Currently, only six platforms, including HATA Digital and Luno, are <a href="https://www.sc.com.my/regulation/guidelines/recognizedmarkets/list-of-registered-digital-asset-exchanges" target="_blank" rel="nofollow noopener">authorized</a> to operate in Malaysia.

These concerted efforts reflect Malaysia's commitment to maintaining regulatory compliance and protecting its energy infrastructure from illegal crypto mining operations.

Malaysia Targets Illegal Crypto Mining: $723 Million in Electricity Stolen

Malaysia's crackdown on illegal crypto mining reveals $723 million in electricity theft. Over 2,000 items seized and disposed of, including Bitcoin mining machines.

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Malaysia Targets Illegal Crypto Mining: $723 Million in Electricity Stolen

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