{{articledata.title}}

- Malaysia identifies 14,000 illegal mining sites tied to US$1.1B in stolen power

- A new task force weighs stricter actions, including a possible mining prohibition

- Miners evade detection with heat shields, noise disguises, and rapid site relocation

Malaysian officials have expanded a nationwide crackdown on illicit Bitcoin (CRYPTO: $BTC ) mining operations after authorities determined that roughly US$1.1 billion in electricity was withdrawn from the national grid over the past five years.

The losses incurred by state-owned utility Tenaga Nasional Berhad (TNB) stem from thousands of unauthorized mining setups that tapped directly into electrical infrastructure as Bitcoin prices climbed to record levels earlier this year, before retreating by more than 30%. The Energy Ministry reported that approximately 14,000 illegal sites have been identified since 2019, showing the scale of unlicensed activity and the difficulty of monitoring rapidly shifting operations.

Government Coordinates Multi-Agency Enforcement

A new special committee was formed on November 19 to centralize enforcement strategies, bringing together the Ministry of Finance, Bank Negara Malaysia, and TNB under the leadership of Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir.

During the committee's first meeting on November 25, members examined the broader implications of sustained power theft, including the strain on grid stability and the risk of damage to electrical facilities. Officials also discussed whether a nationwide prohibition on Bitcoin mining should be considered, though no formal recommendation has been issued.

Investigators rely on thermal-imaging drones to scan for abnormal heat signatures commonly produced by mining hardware. Ground teams supplement the aerial surveys with handheld sensors that detect irregular consumption patterns. Moreover, operators have adjusted by installing heat shields, expanding surveillance with CCTV systems, and placing deterrents at entry points to block inspections.

Mining Sites Shift Locations to Avoid Detection

Authorities say many operations relocate frequently, often moving between abandoned homes and empty storefronts to evade investigations. Some residents have reported hearing unusual bird sounds near properties later discovered to host mining rigs. Officials determined these noises were recordings intended to disguise the sound of running equipment.

One of the main incidents occurred at ElementX Mall, a largely underutilized commercial complex overlooking the Strait of Malacca. Mining activity persisted there from early 2022 until a viral TikTok clip revealed the setup in early 2025. In Sarawak, a firm known as Bityou operated a facility inside a former logging yard.

While Bitcoin mining remains legal in Malaysia when operators use authorized power sources and comply with tax requirements, Akmal raised doubts about the viability of lawful operations, citing market volatility. He added that the mobility patterns seen across illicit sites indicate coordination consistent with organized groups that relocate quickly when enforcement intensifies.