National utility TNB identifies nearly 14,000 sites involved in siphoning electricity, prompting stronger monitoring and enforcement measures.
Malaysia’s national utility company, Tenaga Nasional Berhad (TNB), has revealed more than $1.1 billion in losses tied to electricity stolen by illegal crypto mining operations over the past five years. The findings, disclosed in a recent parliamentary filing, highlight the growing financial and infrastructure strain caused by unlicensed mining activity across the country.
Massive Scale of Illegal Power Use
According to the energy ministry, TNB identified 13,827 premises illegally diverting electricity for cryptocurrency mining from 2020 through August 2025. The unauthorized consumption resulted in losses of 4.57 billion Malaysian ringgit, equal to roughly $1.1 billion.
The ministry warned that this level of theft not only burdens the national grid but also poses serious risks to public safety and economic stability.
“Illegal power tapping threatens the integrity of the national electric supply system,” the ministry stated in the translated document.
Authorities noted that unlicensed mining operations often bypass safety mechanisms, creating fire hazards and electrical instability in surrounding areas.
Ongoing Crackdown on Illicit Mining
Malaysia has been combating illicit crypto mining since at least 2018, with enforcement intensifying as electricity losses mounted. In August 2024, authorities destroyed over 900 seized bitcoin mining rigs, valued at nearly 2 million ringgit.
A technology researcher familiar with Southeast Asian mining operations explained that “the country’s low electricity rates have made it a magnet for rogue mining setups, especially smaller operators who avoid licensing and safety requirements.”
New Tools to Detect Power Theft
To curb future losses, the ministry said TNB has developed an internal database that tracks property owners and tenants linked to suspected electricity theft. The system allows investigators to more easily identify emerging hotspots.
“This database serves as an important internal reference for identifying and monitoring suspicious premises and forms the basis for operational inspection actions,” the ministry said.
On the technical side, TNB has rolled out smart meters and launched a Distribution Transformer Meter pilot program to monitor consumption patterns at energy substations. These tools are designed to detect abnormal spikes in electricity use—often an early sign of illegal mining.
Malaysia’s discovery of over $1 billion in power theft underscores the scale of unlicensed crypto mining and the heavy toll it places on national infrastructure. With advanced monitoring tools and stronger enforcement, authorities aim to clamp down on illegal operations and safeguard the stability of the country’s power grid.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.