Malaysia Faces $1.1 Billion Loss from Illegal Crypto Mining Power Theft
Since 2020, Malaysia has suffered an estimated RM 4.57 billion (about USD 1.1 billion) in losses due to illegal electricity use linked to crypto mining, according to Tenaga Nasional Berhad (TNB), the state utility. The Energy Transition and Water Transformation Ministry reported to Parliament that 13,827 premises were found to have used electricity illegally for mining cryptocurrencies during this period.
Cases of crypto-linked power theft have escalated notably; in May, authorities observed a 300% increase in such cases. Raids uncovered mining farms wired directly into distribution lines, signaling an expansion beyond isolated incidents. First detected in 2018, the number of identified cases grew to 2,397 by 2024, based on data from TNB.
TNB has responded by creating a database containing detailed records of owners and tenants suspected of involvement in electricity theft related to Bitcoin mining activities. Analysts cite weak oversight and outdated load-tracking technologies as contributing factors. The availability of cheap subsidized electricity combined with rising Bitcoin prices has incentivized illicit mining activities.
The regulatory environment remains unclear; while crypto mining is legal in principle, it is poorly defined in practice. This ambiguity has prompted calls for tighter monitoring of energy use, implementation of dedicated licensing channels for legitimate mining operations, establishment of appropriate tariffs, and enforcement through inspections and registration.
