TEMPO.CO, Jakarta – A recent crackdown in Malaysia has highlighted a growing problem across Southeast Asia: the connection between illegal cryptocurrency mining, electricity theft, and organized crime networks.
According to a report by Deutsche Welle (DW), Malaysian authorities uncovered a cryptocurrency mining operation in the southern state of Johor, where 71 mining machines had been operating around the clock across four rented properties before police conducted raids on July 22 and 23.
Authorities arrested three suspects and seized computers, routers, vehicles, and equipment allegedly used for illegal Bitcoin mining.
Johor police chief Ab Rahaman Arsad said the syndicate had bypassed electricity meters, causing estimated losses of around €14,500 (US$16,600) in just one month, according to local media reports cited by DW. The operation was believed to have generated between €17,200 and €21,500 in monthly revenue.
Malaysia Records Thousands of Crypto Mining Electricity Theft Cases
While the Johor case was relatively small, DW reported that illegal cryptocurrency mining has caused significant losses in Malaysia.
Between 2020 and 2025, national utility company Tenaga Nasional Berhad (TNB) identified nearly 14,000 premises linked to electricity theft for cryptocurrency mining, resulting in cumulative losses of around €1.1 billion.
Data from Malaysia’s Energy Ministry showed recorded electricity theft cases linked to illegal mining rose from 610 incidents in 2018 to 2,397 cases in 2024.
Authorities have described the practice as a threat to public safety, economic stability, and the country’s electricity infrastructure.
"Thousands of incidents have triggered investigations into illegal mining for cryptocurrency purposes," Sonny Zulhuda, an associate professor at the International Islamic University Malaysia, told DW.
He said illegal mining creates major challenges for electricity security, economic sustainability, competition, and government revenue, adding that enforcement has struggled due to limited legal preparedness and investigative capacity.
Crypto Mining and Organized Crime Networks
Cryptocurrency mining itself is legal in many countries, but authorities are increasingly finding links between illegal mining operations and broader criminal activities, including online gambling, money laundering, and cyber scam networks.
DW reported that the United States and the United Kingdom sanctioned Cambodia-based Prince Group and related entities in October, alleging involvement in forced-labor scam operations and cryptocurrency-based money laundering.
US authorities also seized Bitcoin worth around US$15 billion from wallets linked to Prince Group chairman Chen Zhi, describing the assets as proceeds and tools connected to fraud and money laundering.
Thailand has also uncovered links between stolen electricity and transnational criminal networks.
In 2025, Thailand’s Department of Special Investigation dismantled three major illegal crypto mining operations, confiscating more than 6,390 mining machines and estimating losses to the Provincial Electricity Authority at more than €24.9 million.
Indonesia Also Faces Illegal Crypto Mining Cases
Indonesia has experienced similar incidents involving illegal cryptocurrency mining.
In December 2023, police in North Sumatra raided 10 locations and confiscated more than 1,100 Bitcoin mining machines. State electricity company PT PLN estimated losses of around €700,000 over six months due to electricity theft.
Governments across Southeast Asia have responded with stronger enforcement measures, including raids, stricter penalties, and cooperation between law enforcement agencies, electricity providers, and regulators.
Malaysia, for example, has established a multi-agency committee and introduced smart meters at substations to detect unusual electricity consumption patterns.
However, enforcement remains challenging as mining equipment can be relocated quickly, rental properties can be used through intermediaries, and electricity meter manipulation may involve organized networks or insider assistance.
Saaidal Razalli Azzuhri, a telecommunications expert at the University of Malaya, told DW that authorities should strengthen monitoring systems, require mining licenses, disclose company ownership structures, and track financial transactions and cryptocurrency wallets.
"The objective should not be to prohibit blockchain technology, but to ensure that miners pay the full economic cost of their electricity," he said.
Laos Ends Crypto Mining Experiment
DW also highlighted Laos as an example of how even state-backed cryptocurrency mining projects can struggle to deliver economic benefits.
In 2021, Laos approved six companies to mine and trade cryptocurrencies, hoping to utilize its abundant hydropower resources and generate revenue from excess electricity.
At its peak in 2021 and 2022, the sector consumed around 500 megawatts of electricity.
However, officials later concluded that the industry created limited employment opportunities and provided fewer economic benefits compared with sectors such as manufacturing.
Laos eventually moved to redirect electricity supplies toward industries including metal processing, electric vehicle manufacturing, artificial intelligence data centers, and electricity exports to neighboring countries.
The experience highlights a broader challenge for countries seeking to attract cryptocurrency mining: cheap electricity may draw investors, but it does not necessarily create sustainable economic growth.
When operators steal power or rely on subsidized electricity without generating broader value, the costs are ultimately borne by the public.
