Bitcoin News: Johor Gang Cleared $25,000 Monthly Using Stolen Electricity

Malaysian authorities have busted an illegal Bitcoin mining syndicate following four coordinated raids on July 22 and 23, carried out with Tenaga Nasional Berhad (TNB).

Police arrested three men and seized 71 mining rigs, with the operation estimated to be generating RM80,000 to RM100,000 (around $25,000) in monthly profits.

The crackdown, dubbed Ops Letrik, highlights the enduring appeal of illegal mining in Johor. By stealing electricity, the group removed its biggest cost, transforming a marginal setup into a highly profitable venture while leaving TNB to absorb the losses.

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

How the Operation Worked

The raids were led by the Johor Contingent Police Headquarters’ Criminal Investigation Department (D4) alongside TNB’s Southern Region SEAL unit.

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

The syndicate bypassed electricity meters using illegal direct connections, allowing continuous mining without paying for power.

In about a month, the stolen electricity caused RM67,502.30 in losses to TNB. In contrast, the group earned several times that amount in Bitcoin revenue, underscoring the profitability of power theft.

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

Police said one suspect managed all four locations, while the other two handled installation and technical work. The suspects, aged 26 to 46, were reportedly earning around RM5,000 per month each.

All three remain in custody until July 26, while authorities continue to track additional individuals linked to the network.

Legal Risks and Crackdown

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 profit potential continues to drive illegal mining. Authorities have responded by ramping up enforcement rather than relying solely on legal deterrence.

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

Malaysia’s Power Theft Challenge

The Johor case reflects a broader nationwide issue. Illegal crypto mining in Malaysia has evolved into a structured underground activity built around electricity theft.

With legitimate mining margins squeezed by rising energy costs and network difficulty, stealing power removes the biggest expense—making operations profitable regardless of market conditions.

This dynamic helps explain why such syndicates persist despite repeated raids and prosecutions, while legitimate operators continue to bear full operational costs.

Police say investigations are ongoing, with more suspects potentially linked to the syndicate still under scrutiny.