High costs: How illegal mining operations threaten electrical stability in Malaysia

Malaysian authorities are on the brink of a real energy crisis, having identified complex and extensive networks involved in Bitcoin mining operating outside the legal framework. These illegal operations have drained large amounts of electricity from the national grid without paying any fees or financial obligations to the state.

Losses Reach Astronomical Figures

According to official reports from the responsible authorities, the financial losses caused by these illegal activities have exceeded $1 billion over the past five years ( from 2020 to 2025 ). These figures reflect a widespread proliferation of thousands of farms dedicated to Bitcoin mining across Malaysia, leading to accelerated stress on the country’s energy infrastructure.

Advanced Monitoring Technologies to Eliminate Smuggling

In an effort to curb this growing phenomenon, security agencies and relevant authorities have resorted to using advanced technologies for detection and monitoring. These efforts rely on drones and sophisticated data analysis systems capable of detecting any abnormal or unusual increases in electricity consumption, especially in areas plagued by these activities.

Ongoing Challenges and Resistance

Nevertheless, the investigation team faces significant challenges as those involved in these activities attempt to develop new methods of concealment and evade oversight. Observations indicate that most of these illegal farms hide their operations using advanced techniques, making the eradication of the phenomenon more complex and requiring increased efforts from the government side.