In recent years, authorities worldwide have found many illicit bitcoin mining firms hiding their activity in abandoned homes. These covert installations infringe property rights and cause significant financial losses from illegal power usage.
Cryptocurrency Mining Operation Raided in Miri
Following a combined operation by Sarawak Energy in Malaysia. In June 2021, the Miri District Police in June 2021 a cryptocurrency mining center inside. However, an abandoned wooden hut on an oil palm plantation at Jalan Padang Kerbau, Miri. Forty-four mining machines worth RM225,000 were seized as a consequence of the operation. The inquiry revealed that the hut’s unstable construction and dangerous wiring caused major safety concerns since electricity was illegally provided to it without a meter.
Illegal Bitcoin Mining Uncovered in Malaysia Fire
A house fire in Bandar Puncak Alam, Malaysia, in February 2025 revealed yet another illicit Bitcoin mining operation. Firefighters found nine mining sites linked to an illegal power supply, underscoring the continuous problem of electricity theft related to crypto mining. Such acts cost Malaysia $750 million in missed electricity income between 2018 and 2023.
Raid on Illegal Bitcoin Mining in Malaysia
Authorities raided a Muara Tabuan, Malaysia property in October 2021, finding 90 bitcoin mining sites, a computer unit, and an internet modem. Since February of that year, the firm has been mining cryptocurrency, allegedly losing RM184,000 in electricity over eight months. Under the Sarawak Electrical Ordinance, the landlord and tenant were subject to investigations on energy theft.
Thai Authorities Raid Illegal Bitcoin Mining
Thai authorities destroyed an organised illicit network running bitcoin mining farms out of vacant homes in December 2024. Investigations found that operators changed electricity meters to save money, which caused significant losses for nearby power companies. Two people were arrested on allegations of electricity theft and illegal operation of mining equipment, while high-performance computing machines were seized due to the operation.
Penalties for Illegal Power Hookups in Malaysia
Unregulated and defective wiring in illegal power hookups causes safety concerns, including possible fires and electrocution. Under Section 37 of the Electricity Supply Act in Malaysia, changing the flow of electricity is prohibited and carries fines or five years in prison, with penalties of up to RM100,000. In Sarawak, Malaysia, similarly, Section 33(5) of the Electricity Ordinance penalizes electricity theft with a penalty of up to RM100,000 and/or five years imprisonment.
Implications for Finance
Illegal mining activities cause significant financial damages beyond only safety issues. Unauthorized crypto mining-related electricity consumption is predicted to cost Malaysia over $723 million between 2018 and 2023. Comparably, illicit Bitcoin mining activities in Thailand have resulted in notable electricity theft; one operation reportedly causes losses of roughly 10 million baht monthly.
Finally
Still a major problem, using abandoned homes for illegal bitcoin mining poses safety risks and can result in significant financial losses. Authorities emphasize the need to follow legal and safety criteria in cryptocurrency mining activities and are stepping up their efforts to find and destroy such enterprises.
