Malaysia Cracks Down on Bitcoin Mining Syndicate Generating $25,000 Monthly Profits

Malaysian police have dismantled a Bitcoin mining syndicate in Johor following four raids on July 22 and 23. Authorities arrested three local men and seized 71 cryptocurrency mining rigs, generating an estimated RM80,000 to RM100,000 (~$25,000) in monthly profits.

The bust, codenamed Ops Letrik, exposed the economics of illegal mining in Johor: electricity theft converts what would be an unprofitable operation into a high-margin one, with TNB absorbing the cost. The syndicate's method was direct tapping: bypassing legitimate TNB meters with hardwired connections allowed their Bitcoin mining operations to run without paying bills.

Initial investigations found the syndicate was capable of generating profits of between RM80,000 and RM100,000 per month, while the suspects are believed to have been paid around RM5,000 a month. The case is being investigated under two statutes: Section 427 of the Penal Code for criminal mischief and Section 37(1) of the Electricity Supply Act 1990 for interfering with electrical installations.

The operation was carried out by the Johor Contingent Police Headquarters' Criminal Investigation Department (D4) in collaboration with TNB's Southern Region SEAL team. Raids hit three residential homes and one shophouse in Iskandar Puteri, Johor Bahru Utara, and Kulai, each rented at RM5,000 to RM6,000 per month.