Malaysian Police Seize 30 Bitcoin Mining Machines, Detain Two Men in Electricity Theft Probe
Key Takeaways
- •Two local men were detained in Seri Iskandar, Perak, after police and utility Tenaga Nasional Berhad uncovered 30 Bitcoin mining machines allegedly linked to an illegal power connection.
- •The investigation is proceeding under Section 427 of the Penal Code, covering mischief, and Section 37(1) of the Electricity Supply Act 1990, which addresses electricity theft.
- •Police stated that unauthorized cryptocurrency mining operations impose significant financial losses on utilities and increase fire hazards due to heavy electrical loads.
- •Earlier this year, Perak authorities seized 62 machines in Bandar Seri Iskandar with estimated losses of about 60,000 ringgit, and 168 machines across four premises in Sungai Siput and Perak Tengah.
- •The Seri Iskandar probe is ongoing, and the two detained men have not been convicted, with any charges depending on the investigation's findings.
Malaysian police have detained two men and seized 30 Bitcoin mining machines after uncovering an operation allegedly powered through an illegal electricity connection in Seri Iskandar, in the state of Perak. The raid adds to a growing series of enforcement actions targeting cryptocurrency mining operations accused of bypassing legal power supplies.
The operation was carried out in cooperation with Tenaga Nasional Berhad, Malaysia's main electricity utility. In addition to the mining machines, police seized an internet router, a desktop network switch, and electrical wiring during the raid.
Police Investigate Illegal Power Connection
Perak Tengah district police chief Supt Hafezul Helmi Hamzah said officers detained the two local men to assist with the investigation, according to a report by The Star. Authorities are examining whether the premises used an unauthorized connection to supply electricity to the mining equipment.
The investigation falls under Section 427 of Malaysia's Penal Code, which covers mischief, and Section 37(1) of the Electricity Supply Act 1990, which deals with the theft of electricity. Police said illegal cryptocurrency mining can inflict substantial losses on utility providers while also raising fire risks due to the heavy electrical loads involved.
Bitcoin mining relies on specialized machines that run around the clock to verify transactions and secure the network, and electricity is among the largest operating costs for such setups. Power drawn through an unauthorized connection bypasses metering altogether, leaving the utility unable to bill for the electricity consumed.
The seizure follows several other Bitcoin mining crackdowns in Perak this year. In July, police seized 62 mining machines from two premises in Bandar Seri Iskandar after investigators allegedly found unauthorized electricity connections. Authorities estimated electricity losses in that operation at about 60,000 Malaysian ringgit.
Mining Crackdowns Continue Across Perak
The latest case also comes shortly after police reported a larger operation involving 168 Bitcoin mining machines across four premises in Sungai Siput and Perak Tengah.
Perak authorities have increasingly focused on vacant or underused properties allegedly converted into mining centers. Such operations can consume significant amounts of electricity, making unauthorized connections a major enforcement concern for utilities and law enforcement agencies.
Malaysia has continued to scrutinize electricity theft linked to cryptocurrency mining as authorities seek to protect power infrastructure and reduce losses. The Seri Iskandar investigation remains ongoing, and the two detained men have not been convicted of any offense. Any decision to file charges under the cited provisions would rest on the findings of the probe.
