Thailand Cracks Down on $8.6M Bitcoin Mining Operations Financing 'Chinese Scam Networks'

Authorities in Thailand have confiscated Bitcoin mining equipment worth $8.6 million (approximately 300 million baht) from seven mining operations suspected of funding Chinese criminal organizations operating from Myanmar. The Department of Special Investigation (DSI) carried out raids on Tuesday at six locations in Samut Sakhon and one in Uthai Thani, seizing 3,642 mining devices valued at $7.7 million (270 million baht), alongside electrical equipment worth $860,000 (30 million baht), according to the Bangkok Post.

The raids are part of growing concerns that Bitcoin mining operations have evolved from mere power theft into essential components of international cybercrime networks.

Investigators found that most of the seized mining rigs were housed in soundproof containers, equipped with water-cooling systems. The operations were traced back to Chinese scam groups based in Myanmar, who have reportedly generated over $143 million (5 billion baht) in illicit financial transactions. Thai authorities have requested assistance from the Chinese government to expand the investigation into these operations.

Bitcoin mining has increasingly become a dual-purpose operation for criminal syndicates: generating revenue from stolen electricity while also laundering illicit gains through cryptocurrencies. Cybercrime consultant David Sehyeon Baek highlighted that this issue extends beyond simple Chinese scam operations. "This is a transnational franchise modelcapital may originate in Chinese networks, but the operations span Myanmar, Cambodia, Laos, Thailand, and beyond," Baek explained. "The same networks that run forced-labor scams are now investing in data centers, mining rigs, and other physical infrastructure to fortify their operations," he added.

Baek noted that law enforcement agencies struggle to distinguish between legitimate and illicit cryptocurrency transactions, as these operations are often hidden behind shell companies and dummy directors. "These syndicates are pushing illicit funds into mining rigs, making it difficult to trace which digital assets are clean and which are part of criminal activities," he said.

This crackdown is part of a broader effort across Southeast Asia to address crypto-related power theft. In Malaysia, Tenaga Nasional Berhad, the state electricity provider, recently reported that illegal crypto mining activities have siphoned off approximately $1.1 billion (RM 4.57 billion) worth of electricity over the past five years. Malaysian authorities have responded by deploying drones with thermal imaging and handheld sensors to locate such operations. Miners have taken countermeasures by installing heat shields and CCTV cameras to avoid detection.

Earlier this year, Malaysian police raided multiple illegal mining sites, seizing 45 mining machines worth $52,145 (RM 225,000) that were responsible for stealing $8,342 (RM 36,000) worth of electricity per month. In April, the United Nations Office on Drugs and Crime warned that transnational criminal organizations from East and Southeast Asia were using illegal cryptocurrency mining as a means to launder billions of dollars in illicit profits. In response, Interpol recently elevated scam networks to a global criminal threat level.

In the United States, the Department of Justice, FBI, and Secret Service launched the Scam Center Strike Force to combat crypto scams orchestrated by organized Chinese crime syndicates. Baek warned that as enforcement efforts increase, these mining operations will simply relocate to more remote or cross-border locations. "The real challenge will be whether asset seizures can disrupt the business model, not just remove the machinery," he cautioned.

Author: Sophia Brooks