Malaysia is facing huge losses due to electricity theft associated with cryptocurrency mining, as the national electricity company 'Tenaga Nasional' (TNB) announced that the value of stolen electricity has exceeded one billion dollars over the past four years.
According to a parliamentary file, around 14,000 facilities have been discovered illegally drawing electricity since 2020, by bypassing or manipulating meters to operate mining equipment without paying the costs.
The problem of illegal mining has worsened:
The Ministry of Energy and Water Transformation stated that the unauthorized consumption volume, amounting to 4.6 billion Malaysian ringgit, reflects the significant pressure that mining activities put on the electricity grid, especially in the absence of a clear regulatory framework for this sector.
To combat this phenomenon, cooperation between TNB, the police, the communications authority, and the anti-corruption agency has been strengthened, allowing for the confiscation of mining platforms at multiple locations.
TNB also established an internal database containing ownership and rental information for suspected sites, helping to reveal patterns of abnormal consumption and guide inspections.
The company is also installing smart meters at distribution stations to track energy flows in real-time and detect any manipulation early, as the government sees illegal mining as an increasing financial and operational threat.
Intensive security campaigns:
Last August, authorities increased their operations against electricity theft networks related to mining, arresting seven individuals—three Malaysians and four foreigners—suspected of managing illegal mining facilities.
52 mining platforms and other equipment valued at nearly 250,000 ringgit were confiscated.
Electricity theft is a crime punishable under Malaysian law with fines of up to 100,000 ringgit and may lead to imprisonment.
The state of Sarawak also witnessed similar raids, where two sites consuming about 30,000 ringgit monthly illegally were found, and 120 mining devices were confiscated.
