Johor Police Bust Illegal Bitcoin Mining Syndicate, TNB Suffers RM67,502 Loss

KUALA LUMPUR, JULY 2026 – Johor police have uncovered an illegal cryptocurrency-mining operation that allegedly used stolen electricity to power Bitcoin-mining machines at four premises across Iskandar Puteri, northern Johor Bahru and Kulai.

The raids were conducted on July 22 and 23 under Ops Letrik by officers from the Johor Criminal Investigation Department, together with Tenaga Nasional Berhad’s Southern Region Special Engagement Against Losses team.

Three men aged between 26 and 46 were arrested on suspicion of participating in the illegal operation. One of the suspects is believed to have managed all four premises, while the other two allegedly worked as technicians responsible for installing illegal wiring and operating the mining equipment.

Police raided two premises in Iskandar Puteri, one in northern Johor Bahru and another in Kulai. The locations consisted of three residential properties and one shop house, all of which were rented for the alleged mining operation. Monthly rental costs were estimated at between RM5,000 and RM6,000 for each property.

Preliminary investigations found that the syndicate had allegedly operated for approximately one month. It is believed to have used direct electrical connections, commonly known as tapping, to bypass authorised TNB meters and avoid paying electricity charges at the correct tariff.

TNB estimated that the illegal connections caused losses of RM67,502.30 during the syndicate’s month-long operation. Police believe the group could have generated between RM80,000 and RM100,000 in profits over the same period, depending on Bitcoin’s market value.

Authorities seized 71 cryptocurrency-mining machines, two desktop computers, two laptops, five routers, two monitors, two computer keyboards, a mouse, a mobile phone and several keys and padlocks. Two vehicles believed to have been connected to the operation were also confiscated.

The three suspects were remanded for four days until July 26 to assist the investigation. Police are also searching for several other individuals believed to have links to the syndicate.

The case is being investigated under Section 427 of the Penal Code for committing mischief. A conviction may result in imprisonment of between one and five years, a fine, or both.

Investigations are also being conducted under Section 37(1) of the Electricity Supply Act 1990 for interfering with or modifying electrical installations. The offence carries a maximum fine of RM100,000, imprisonment of up to five years, or both upon conviction.

Between January 2025 and June 2026, Johor police raided 16 premises suspected of conducting illegal cryptocurrency-mining activities. A total of 158 mining machines were seized during that period, while TNB’s estimated losses reached almost RM1 million.

Police advised property owners to carefully verify the identities and backgrounds of potential tenants, particularly when unusually high rental payments or large advance payments are offered. Such arrangements may be used to conceal illegal operations inside residential or commercial properties.