Police Raid Uncovers 41 Illegal Crypto Mining Machines in Malaysia

Malaysian authorities have confiscated 41 machines suspected of being used in illegal cryptocurrency mining operations following three coordinated raids in Teluk Intan. The operations targeted locations suspected of stealing electricity to power mining equipment.

Hilir Perak police chief Bakri Zainal Abidin reported that officers seized 24 machines during the initial raid on the night of January 9. Two subsequent raids conducted early on January 10 led to the confiscation of the remaining 17 machines across three separate locations in the Teluk Intan area.

No arrests have been made at this stage. Investigators continue working to identify the individuals or syndicates behind the operations. Authorities are examining evidence related to property damage and misuse of electricity supply, both of which are criminal offenses under Malaysian law.

Cryptocurrency Mining Remains Legal Under Proper Conditions

Mining cryptocurrency is not illegal in Malaysia when conducted through legitimate means. The issue arises when operators steal electricity or damage property to run their mining rigs. The machines seized in these raids are believed to have been connected to illegal electricity supplies.

Unauthorized operations typically bypass electricity meters or tap directly into power lines. This allows operators to avoid paying for the substantial electricity required to run mining equipment. Such practices constitute theft from the national power grid and violate Malaysian law.

Malaysian authorities have conducted numerous raids on illegal mining operations across various states in recent years. Some operations resulted in the seizure and destruction of thousands of machines. Police have previously used steamrollers to publicly destroy confiscated equipment as a deterrent to potential illegal miners.

Safety Hazards and Infrastructure Damage

Illegal cryptocurrency mining poses significant safety risks beyond the legal violations. The equipment generates substantial heat and requires proper cooling systems and electrical infrastructure to operate safely. Illegal setups typically lack these essential safety measures.

Overloaded electrical systems can trigger fires that endanger both operators and surrounding properties. The constant heat generation and equipment weight can cause structural damage to buildings housing these operations. Several incidents in Malaysia and internationally have resulted in electrical fires linked to unauthorized mining activities.