Malaysian police have detained two men and seized 30 Bitcoin mining machines from a premises in Seri Iskandar after uncovering an alleged illegal electricity connection operation. According to Perak Tengah district police chief Supt Hafezul Helmi Hamzah, the district's Criminal Investigation Division carried out the operation with national utility company Tenaga Nasional Bhd. Investigators identified a premises where electricity was allegedly being diverted through an unauthorized connection to power Bitcoin mining equipment. The case is being investigated under Section 427 of the Penal Code and Section 37(1) of the Electricity Supply Act 1990.
Police seized 30 mining machines along with an internet router, a desktop switch and a coil of electrical wire during the operation. The two local men were detained to assist with the investigation under Malaysia's Penal Code and Electricity Supply Act. As reported by crypto.news, the stolen electricity was estimated to be costing the utility around RM36,000 per month. Equipment seized from the locations was valued at roughly RM225,000.
The latest seizure follows several operations targeting Bitcoin miners accused of bypassing electricity meters in Malaysia. In July, police arrested two men after raids on three properties in Tronoh uncovered 73 Bitcoin mining machines. A separate operation in Terengganu had uncovered 45 mining machines in May 2025 after police and TNB personnel raided properties in the Hulu Terengganu and Marang districts.
Electricity costs are one of the main operating expenses for Bitcoin miners because specialized mining machines run continuously while competing to process transactions and earn block rewards. Bypassing meters allows illegal operators to avoid paying for that power, leaving electricity providers with the cost of the consumed energy. TNB has reported substantial losses from such operations, with illegal Bitcoin mining causing more than RM440 million in electricity theft losses since 2020. Losses reached RM5.9 million in 2020 before climbing to RM140.4 million in 2021 and RM124.9 million in 2022.
Electrical theft linked to Bitcoin mining has raised safety concerns alongside the financial losses. A Bitcoin mining operation in Kuala Lumpur was discovered in February 2025 after an explosion and smoke prompted firefighters to respond to a house. Firefighters found modified electrical wiring inside the property after extinguishing the fire. In the latest Seri Iskandar case, Hafezul similarly warned that illegal connections used for cryptocurrency mining can raise the risk of fires while causing substantial losses to utility providers. Police urged members of the public with information about illegal cryptocurrency mining activities to provide it to authorities.
