Malaysia lost $1.1 billion in electricity over five years, using drones to track illegal Bitcoin mining

In Malaysia, drones, handheld sensors, and resident complaints are being used to track illegal Bitcoin mining operations. These miners steal electricity, causing state-owned energy companies to lose $1.1 billion.

Electricity theft for mining in Malaysia leads to losses of up to $1.1 billion in five years

According to Bloomberg, in Malaysia’s illegal cryptocurrency mining hotspots, the hunt begins from the sky.

Drones hover over rows of shops and abandoned houses, searching for abnormal heat sources. On the ground, police use handheld sensors to detect unusual electricity usage. Sometimes, the tracking methods are even more rudimentary—residents report hearing strange bird calls, and when police arrive, they discover someone is deliberately playing nature sounds to cover up the roar of machines behind tightly closed doors. Together, these tools form a surveillance network used to hunt down illegal Bitcoin miners.

Over the past five years, authorities have uncovered about 14,000 illegal mining sites. According to the Ministry of Energy, during this period, electricity theft has caused state-owned energy company (TNB) about $1.1 billion in losses. Moreover, the situation is worsening; as of early October when Bitcoin prices hit all-time highs, authorities had recorded about 3,000 electricity theft cases related to mining.

Malaysia establishes interdepartmental special committee to combat illegal operators

On November 19, the Malaysian government established an interdepartmental special committee, including members from the Ministry of Finance, Bank Negara Malaysia, and the national energy company (TNB). This task force plans to coordinate efforts to combat illegal operators.

Akmal Nasrullah Mohd Nasir, Deputy Minister of Energy Transition and Water Transformation and chairman of the committee, stated:

“The risks of allowing such activities to occur are no longer just about theft—in fact, they can even sabotage our facilities. This poses challenges to our system.”

Miners in Malaysia are very adept at transforming unusual spaces. Currently in Malaysia, as long as operators can legally obtain electricity and pay taxes, Bitcoin mining is legal. However, Akmal pointed out that the sheer number of illegal Bitcoin mining sites and the behavior patterns of those behind them indicate organized crime involvement.

“It’s clear that criminal groups are operating, as they are very agile and often move from one location to another. They definitely have a set modus operandi.”

This article, “Malaysia loses $1.1 billion in electricity over five years, uses drones to track illegal Bitcoin mining,” first appeared on Chain News ABMedia.