Arrests in Malaysia for Bitcoin Mining Electricity Theft

Malaysian authorities have arrested seven individuals for allegedly conducting bitcoin mining operations involving electricity theft, according to local media reports.

Bernama, the country’s national news agency, reported on Saturday that three local residents and four foreign nationals were arrested and detained separately last week on suspicion of stealing electricity to power their bitcoin mining operations.

Sepang District Police Chief ACP Wan Kamarul Azran Wan Yusof stated that these individuals have no prior criminal records. The authorities aim to “detect illegal bitcoin mining activities that involve electricity theft,” according to the report.

Local police seized 52 bitcoin mining rigs and other electronic devices, with a total value estimated at 250,000 Malaysian Ringgits (RM), approximately $57,000.

This law enforcement operation is part of a broader crackdown on power theft issues associated with bitcoin miners. Akmal Nasrullah Mohd Nasir, the deputy energy transition and water transformation minister, mentioned last month that crypto miners in Malaysia stole at least RM3.4 billion ($777 million) worth of power between 2018 and 2023.

Crypto mining operations have increasingly relocated from China— which banned all crypto mining activities in 2021— to the U.S. and other locations including Malaysia, Indonesia, Laos, and Thailand. These Southeast Asian nations are appealing to miners due to their competitive electricity prices, skilled labor, and existing infrastructure.