Malaysian Authorities Arrest Seven Individuals For Illegal Use Of Power To Mine Bitcoin

• The Malaysian police conducted a special enforcement operation last week to bust bitcoin mining activities involving electricity theft, according to a report.
• This comes as part of the country’s broader crackdown on power theft associated with crypto mining operations.

Malaysian authorities have arrested seven individuals for allegedly conducting bitcoin mining operations involving electricity theft, according to local media reports.

Bernama, the country’s national news agency, reported on Saturday that three local residents and four foreign nationals were arrested and detained separately last week on suspicion of stealing electricity to power their bitcoin mining operations.

Sepang District Police Chief ACP Wan Kamarul Azran Wan Yusof said that these individuals have no prior criminal records and the authorities aimed to “detect illegal bitcoin mining activities that involve electricity theft,” according to the report.

The local police added that they seized 52 bitcoin mining rigs and other electronic devices, the total value of which is estimated at 250,000 Malaysian Ringgits (RM) worth $57,000.

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The law enforcement operation came amid a broader crackdown on power theft issues associated with bitcoin miners. 

Akmal Nasrullah Mohd Nasir, deputy energy transition and water transformation minister, said last month that crypto miners in Malaysia stole at least RM3.4 billion ($777 million) worth of power between 2018 and 2023.

Crypto mining operations have increasingly moved from China — which banned all crypto mining activities in 2021 — to the U.S. and other places including Malaysia, Indonesia, Laos and Thailand. 

The Southeast Asian nations are attractive for miners given their competitive electricity prices, skilled labor and existing infrastructure.