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Malaysia lost more than $1.1 billion to electricity theft by cryptocurrency miners between 2020 and August 2024, the national energy ministry said, as authorities crack down on thousands of illegal operations draining the country’s power grid.
The losses stem from 13,827 premises that illegally tapped into the electricity network to power bitcoin mining rigs, according to national utility Tenaga Nasional Bhd (TNB). While crypto mining is legal in Malaysia, tampering with meters or bypassing connections violates the Electricity Supply Act.
“The scope of illegal electricity usage by crypto miners is unprecedented,” said a TNB spokesperson. “We are working closely with law enforcement and local councils to safeguard the stability of Malaysia’s energy infrastructure.”
Tenaga Nasional Bhd (TNB), Malaysia’s national utility, has been collaborating with enforcement agencies, including the Energy Commission, police, and the Malaysian Anti-Corruption Commission, to combat rampant electricity theft linked to crypto mining.
TNB has developed a comprehensive database tracking owners and tenants of premises suspected of illegal power usage. This system aids in identifying suspicious sites and guides operational inspections.
Raids have resulted in the seizure of bitcoin mining machines across thousands of locations, shutting down illegal setups and stabilizing the national grid.
“Most of these criminal syndicates operate in rented warehouses or low-traffic residential areas,” said Bukit Aman Criminal Investigation Department Director, Datuk Seri Mohd Shuhaily Mohd Zain.
“They install heavy-duty ventilation, air conditioners, and soundproofing to remain undetected while bypassing electricity meters and consuming energy equivalent to entire residential blocks.”
To strengthen monitoring, TNB is rolling out smart meters at electricity distribution substations, allowing real-time tracking and detection of abnormal consumption.
Plans are also underway to leverage artificial intelligence and predictive analytics to spot suspicious energy usage patterns and preempt illegal mining operations.
“Implementing AI-driven monitoring will enhance our ability to detect anomalies before they escalate,” said an Energy Commission official. “This is critical to curbing financial losses and protecting grid stability.”
The problem is intensifying. Between 2018 and 2024, power theft linked to illegal crypto mining reportedly surged 300%, with detected cases rising from 610 to 2,397.
From 2020 to 2024, TNB recorded an average of 2,303 crypto-related electricity thefts per year and received approximately 1,699 complaints regarding illicit mining activities.
“The increase in complaints shows heightened public awareness and vigilance against illegal crypto operations,” noted TNB.
Despite being a global player in Bitcoin hash rate share, Malaysia’s competitive industrial electricity rates are being undermined by regulatory uncertainty.
The ACCESS Blockchain Association estimates that formalizing the crypto mining sector could generate 700 million Ringgit in infrastructure investment this year, create 4,000 jobs, and contribute around 150 million Ringgit in annual tax revenue.
“The growth potential of Malaysia’s crypto mining industry is enormous,” said ACCESS Blockchain spokesperson, Lim Wei Ming.
“However, without clear regulation and enforcement, underground operations will continue to thrive at the expense of public utilities.”
The unprecedented surge in crypto mining electricity theft has exposed a critical vulnerability in Malaysia’s power infrastructure.
Between 2020 and 2024, TNB recorded thousands of cases where miners illegally tapped into electricity networks, demonstrating that crypto mining electricity theft is no longer isolated but a systemic threat.
Authorities warn that without rigorous monitoring, crypto mining electricity theft could escalate, impacting grid stability and driving billions in losses annually. Experts suggest that integrating smart meters, predictive analytics, and AI surveillance is essential to detect and prevent crypto mining electricity theft.
The growing prevalence of crypto mining electricity theft signals the urgent need for regulatory clarity and enforcement across the nation.
As authorities tighten inspections and deploy technology-driven solutions, the crackdown on crypto mining electricity theft is expected to intensify.
Malaysia’s case serves as a cautionary tale for countries balancing the economic promise of cryptocurrency mining against risks to energy infrastructure.
With billions lost and the threat of grid instability looming, the government’s response could set a global precedent on how to regulate and integrate cryptocurrency mining responsibly while curbing illegal electricity theft.
