Malaysian police have detained two men and seized 30 Bitcoin mining machines after uncovering an operation in Seri Iskandar that allegedly used an illegal electricity connection.on. Malaysian police detained two men and seized 30 Bitcoin mining machines from a premises in Seri Iskandar. Investigators said the mining operation was allegedly powered through an illegal electricity connection.
Police are investigating the case under Malaysia’s Penal Code and Electricity Supply Act, while authorities warned that illegal connections can cause utility losses and raise fire risks. 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 in Seri Iskandar where electricity was allegedly being diverted through an unauthorized connection to power Bitcoin mining equipment. Police seized 30 mining machines along with an internet router, a desktop switch and a coil of electrical wire during the operation. Two local men were detained to assist with the investigation. “The two men were detained to assist investigations,” Hafezul said in a statement.
Bitcoin mining raid adds to Malaysia enforcement
Bitcoin mining raid adds to Malaysia enforcement 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. crypto.news previously reported that the operation was carried out by Batu Gajah police alongside TNB personnel under Op Elektrik.
Investigators found Bitcoin mining equipment at all three locations, while technical inspections by TNB confirmed electricity theft at two abandoned houses. Police said the mining equipment had been connected to unauthorized electricity supply lines instead of legitimate metered connections. The two suspects, aged 40 and 52, were remanded for three days as investigators pursued the case under Section 427 of the Penal Code and Section 37(1) of the Electricity Supply Act 1990.
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. Police said the two properties, including a residential site in Bukit Perpat and a commercial premises in Wakaf Tapai, were suspected of having been modified to bypass electricity meters. TNB estimated the stolen electricity was costing the utility around RM36,000 per month, while equipment seized from the locations was valued at roughly RM225,000.
Electricity theft has cost TNB millions Electricity costs
Electricity theft has cost TNB millions 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.
The utility said in 2024 that illegal Bitcoin mining had caused more than RM440 million, roughly $101 million at the time, 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. Another RM67.1 million was recorded in 2023. Malaysian authorities have continued responding with joint operations involving police and TNB teams, targeting premises where electricity connections are suspected of being altered or bypassed.
Recent enforcement has included residential homes, commercial buildings and vacant properties converted into mining sites. Illegal Bitcoin mining can create fire risks 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
Firefighters found modified electrical wiring inside the property after extinguishing the fire. Bitcoin mining machines and related equipment were subsequently discovered, while investigators confirmed that electricity had been tapped through an unauthorized connection. 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.
Two men remain under investigation Police are investigating the Seri Iskandar operation under Section 427 of Malaysia’s Penal Code and Section 37(1) of the Electricity Supply Act 1990. Section 37(1) covers tampering with or altering electricity installations and has repeatedly been used in investigations involving suspected electricity theft by cryptocurrency mining operators.
The same provision was cited during the July Tronoh raids and the May 2025 Terengganu operation, alongside provisions of the Penal Code. Hafezul said police viewed cryptocurrency mining involving illegal electricity connections seriously because the activity violated the law, caused losses to electricity providers and created fire risks. Police urged members of the public with information about illegal cryptocurrency mining activities to provide it to authorities so suspected electricity theft operations can be investigated.
