Malaysian authorities have dismantled an illegal Bitcoin mining syndicate after conducting four coordinated raids on July 22 and 23 with Tenaga Nasional Berhad (TNB).

Three local men were arrested and 71 mining rigs were seized. Investigators estimate the operation was generating between RM80,000 and RM100,000 (around $25,000) in monthly profits.

Codenamed Ops Letrik, the crackdown highlights the ongoing profitability of illegal mining in Johor. By bypassing electricity costs through theft, the syndicate turned what would likely be a low-margin operation into a highly lucrative one—while shifting the financial burden onto TNB.

The development comes as Bitcoin (BTC) slipped 0.4% over the past 24 hours to $65,300 after falling below $66,000. The $65,000 level is currently holding as key support.

Operation Details

The raids were led by the Johor Contingent Police Headquarters’ Criminal Investigation Department (D4) in collaboration with TNB’s Southern Region SEAL team.

Authorities targeted three residential homes and one shophouse in Iskandar Puteri, Johor Bahru Utara, and Kulai. Each location was rented for RM5,000 to RM6,000 per month, with rental arrangements still under review.

The syndicate used illegal direct connections to bypass official electricity meters, allowing continuous mining without paying for power.

Within roughly a month, the stolen electricity resulted in losses of RM67,502.30 for TNB. Meanwhile, the group generated several times that amount in Bitcoin revenue, underscoring the strong margins enabled by power theft.

Seized items included 71 mining rigs, computers, laptops, routers, monitors, keyboards, a mobile phone, and two vehicles.

Police said one suspect managed all four sites, while the other two handled installation and technical operations. The suspects, aged between 26 and 46, were reportedly earning about RM5,000 each per month.

All three remain in custody until July 26, with investigations ongoing to identify additional individuals linked to the syndicate.

Legal Risks and Enforcement

The case is being investigated under Section 427 of the Penal Code and Section 37(1) of the Electricity Supply Act 1990, which carry penalties including fines of up to RM100,000 and prison terms of up to five years.

Despite these risks, the scale of profits continues to attract illegal operators. Authorities have intensified enforcement efforts, focusing on frequent raids and asset seizures.

Between January 2025 and June 2026, Johor police conducted 16 raids tied to illegal mining, seizing 158 machines and recording nearly RM1 million in losses for TNB.

A Broader Issue in Malaysia

The Johor case reflects a wider national problem, where illegal crypto mining has developed into a structured underground activity reliant on electricity theft.

With legitimate mining operations facing high energy costs and tightening margins, stealing power removes the largest expense, allowing profits regardless of market conditions.

This imbalance explains the persistence of such syndicates despite ongoing crackdowns, while legitimate operators continue to bear full operational costs.

Authorities say efforts are ongoing to track down more suspects, suggesting the network may extend beyond those already arrested.