Malaysia Hunts Massive Network of Power-Stealing Bitcoin Miners

Authorities in Malaysia are scrambling to dismantle a sprawling underground Bitcoin-mining ecosystem that has siphoned off an estimated $1.1 billion worth of electricity over the past five years — a staggering level of theft that officials say threatens the stability of the national power grid.

According to a new report from Bloomberg, roughly 14,000 illicit mining setups have been identified across the country. These operations, often hidden inside shuttered malls, nondescript industrial units, and other abandoned buildings, have been drawing enormous amounts of power without paying a cent.

To track them down, police have turned to a surprisingly high-tech toolkit: aerial drones, handheld thermal scanners, and specialized sensors capable of detecting suspicious spikes in electricity consumption. The effort has become a technological cat-and-mouse chase, one that reflects how financially rewarding Bitcoin mining can be — especially when someone else is footing the power bill.

Bitcoin’s meteoric rise earlier this year, when it briefly surged past $126,000, only intensified the incentive. Even though prices have since slipped, the past few years have been profitable enough for many to take the gamble.

Malaysia’s deputy minister of energy transition and water transformation, Akmal Nasir, who leads a government task force targeting illegal mining, warned that the danger extends far beyond lost revenue for the state utility, Tenaga Nasional.

“When these operations run unchecked, it’s not just theft anymore,” he told Bloomberg. “They can damage our infrastructure. They put the entire system at risk.”

Other nations have seen similar crises. Iran faced rolling blackouts last year amid concerns that rogue miners were overwhelming the grid. Kuwait recently outlawed crypto mining altogether during what officials described as a severe national power shortage.

Globally, Bitcoin mining consumes more electricity each year than many entire countries, and the United States — now home to more than 75 percent of global mining activity — remains the epicenter. Meanwhile, other major cryptocurrencies such as Ethereum have already shifted to energy-efficient validation methods.

Legal mining in Malaysia, by contrast, is increasingly rare. Between energy costs, regulatory scrutiny, and wild market volatility, Nasir argues that very few legitimately run operations are able even to break even. He compared the illegal networks to organized crime rings — complete with established methods, recruitment pipelines, and logistical support.

“It operates like a syndicate,” he said. “There’s a system and strategy behind it.”

As Bitcoin continues to surge and retreat unpredictably, Malaysia now finds itself combating not only economic losses but an escalating threat to its electrical infrastructure — all driven by a digital gold rush running on stolen power.