Malaysia Steps Up Crackdown on Illegal Crypto Mining Operations

Law enforcement officers in Hilir Perak carried out three operations in the town of Teluk Intan, confiscating a total of forty-one machines believed to be used in illegal crypto mining activities. The raids took place late on January 9 and continued into the early hours of January 10, according to local authorities.

Police chief Bakri Zainal Abidin confirmed that the first operation resulted in the seizure of twenty-four machines, while two subsequent raids uncovered an additional seventeen units at separate locations. No arrests have been made so far, as investigators are still working to identify the individuals behind the operations and determine ownership of the equipment.

Mining itself is legal, but electricity theft is not

While cryptocurrency mining is permitted under Malaysian law, problems arise when operators tap into electricity supplies illegally or cause damage to property. Authorities suspect the seized machines were connected to unauthorized power sources, effectively stealing electricity from the national grid. Such actions constitute criminal offenses, even if the mining activity itself is legal.

Illegal mining setups often bypass electricity meters or connect directly to power lines to avoid the high energy costs associated with running mining rigs. This practice has drawn increasing scrutiny in Malaysia, where similar raids in recent years have led to the confiscation — and in some cases public destruction — of thousands of mining machines as a warning to others.

Beyond financial losses, officials have repeatedly highlighted the safety risks linked to unauthorized mining operations. Mining equipment produces significant heat and requires robust cooling systems and stable electrical infrastructure. Improvised or hidden installations typically lack these safeguards, increasing the risk of electrical fires, damage to buildings, and harm to nearby residents.

Overloaded power systems can also trigger wider disruptions, including voltage instability, transformer failures, and higher electricity costs for legitimate users. In densely populated areas, the constant heat and weight of mining hardware may even compromise building structures over time.

Police in Hilir Perak have urged the public to avoid engaging in illegal mining activities and to report suspected operations before they result in serious damage or accidents. Similar crackdowns in other countries, including Russia and Kazakhstan, show that governments are increasingly willing to restrict or intervene in mining operations when they threaten power stability or public safety.

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