Illegal Bitcoin Mining Erupts in Malaysia, Exposes Power Theft

A fire and explosion in a house in Kuala Lumpur, Malaysia, have led to the discovery of an illegal Bitcoin mining operation. This incident has highlighted a growing issue of electricity theft through unregulated crypto mining in Malaysia, which is putting extra pressure on the country’s power grid. 

Malaysia Fire Incident Leads to a Shocking Discovery

On February 13, 2025, firefighters rushed to a house in Kuala Lumpur after a resident reported seeing smoke and hearing an explosion.  When they arrived, they found the fire was caused by damaged electrical wiring.

After putting out the fire, officials discovered a room full of Bitcoin mining machines and other equipment. They confirmed that the mining operation used stolen electricity to run the machines.

Illegal Bitcoin Mining: A Growing Problem in Malaysia

Illegal Bitcoin mining has been an ongoing problem in Malaysia. Mining requires a lot of electricity, and miners have often stolen power from the national grid. In October 2024, Malaysia’s main electricity provider, Tenaga Nasional Berhad (TNB), reported losing more than 440 million ringgit. 

This is equivalent to a massive $101 million loss because of electricity theft. In July 2024, the Malaysian government said illegal crypto mining stole $723 million worth of electricity between 2018 and 2023.

As Bitcoin mining continues to grow in popularity, the demand for electricity keeps increasing. Illegal mining operations are adding even more pressure on power grids, which can lead to power outages and other problems. 

Malaysian authorities have investigated the illegal mining operation and are asking the public to report any suspicious activities. 

Global Trend of Power Theft

This issue is not isolated to Malaysia. Many countries worldwide are battling illegal crypto-mining operations. The government discovered 230,000 unauthorized mining rigs in Iran, consuming as much electricity as a small province. 

Venezuela banned crypto mining in May 2024 to protect its power grid. The country struggled to keep up with the high energy consumption from illegal mining. 

Just like in Kuala Lumpur, authorities in Thailand raided a house in Ratchaburi town, west of Bangkok, after residents reported frequent power outages. Inside, they discovered equipment used for Bitcoin mining. Officials later confirmed that the house was running an illegal mining operation.

These cases show just how serious the problem of illegal Bitcoin mining is and why it must be addressed before it causes even more problems.