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Malaysia faces huge losses due to electricity theft related to cryptocurrency mining, with Tenaga Nasional Bhd (TNB) announcing that the value of electricity stolen over the past four years exceeded US$1 billion.
Since 2020, some 14,000 facilities have been found to be illegally taking electricity by bypassing or manipulating meters to run mining equipment without paying for it, according to parliamentary documents.
Exacerbating the problem of illegal mining:
The Ministry of Energy and Water Conversion explained that the unauthorized consumption, amounting to RM4.6 billion, reflects the significant pressure that mining activities place on the grid, especially in the absence of a clear regulatory framework in the sector.
In response to the phenomenon, TNB, the police, Communications Authority and anti-corruption agencies have stepped up cooperation and confiscated mining equipment at multiple locations.
TNB has also established an internal database of ownership and rental information for suspicious locations, which helps detect unusual consumption patterns and guide inspections.
The company is also working to install smart meters at distribution stations to track energy flows in real-time and detect any tampering early, at a time when governments view illegal mining as an escalating financial and operational threat.
Intensive security activities:
Last August, authorities stepped up their crackdown on mining electricity theft networks, arresting seven people – three Malaysians and four foreigners – suspected of operating illegal mining facilities.
Fifty-two mining rigs and other equipment worth approximately RM250,000 were confiscated.
Theft of electricity is a crime under Malaysian law and is punishable by a fine of up to RM100,000 and may result in imprisonment.
Similar raids took place in Sarawak, where approximately RM30,000 was illegally consumed per month at two locations and 120 mining equipment were confiscated.
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