Malaysia Discovers More Than $1B in Power Theft of unauthorized Crypto Mining

Tenaga Nasional Bhd (TNB), the national power company of Malaysia, has disclosed significant losses exceeding $1 billion due to unauthorized cryptocurrency mining activities that are consuming substantial amounts of electricity across the country. The Energy and Water Transformation Ministry reported that these losses amounted to RM 4.57 billion, affecting 13,827 premises between 2020 and August 2025.

Spike in Power Theft Driven by Crypto Mining

The increasing prevalence of illegal cryptocurrency mining operations is identified as a primary driver behind the surge in electricity theft. These unauthorized mining setups often involve tampering with or bypassing conventional electricity meters, constituting offenses punishable under the Electricity Supply Act.

In response, TNB, in collaboration with law enforcement agencies, anti-corruption bodies, and regulators, has been conducting joint raids. These operations have led to the seizure of mining rigs and other equipment from premises suspected of engaging in electricity theft.

Enforcement Measures to Combat Illegal Mining

TNB has implemented a comprehensive enforcement program aimed at enhancing detection and deterrence of illegal crypto mining activities:

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  A centralized data warehouse has been established, containing information on owners and tenants of suspicious premises, to facilitate ongoing monitoring.
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  Smart meters are being progressively installed to replace existing substation infrastructure, enabling real-time monitoring of energy flow and the identification of unusual consumption patterns.
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  Intensified crackdowns, codenamed Ops Letrik (Operation Lightning), are actively underway.

In a recent raid in the Manjung district, police confiscated 61 Bitcoin mining machines and networking devices from multiple locations. These seizures were made based on suspicions of significant electricity theft attributed to high power consumption.

Legal Framework, Gaps, and Associated Risks

While cryptocurrency mining itself is not illegal in Malaysia, the act of stealing electricity to power these operations is a criminal offense. Under the Electricity Supply Act, offenders face penalties that can include a maximum fine of RM 1 million or imprisonment for up to 10 years.

Experts have also highlighted the significant safety risks associated with these illicit activities. These include dangerous illegal wiring, overheating equipment, and inadequately controlled ventilation systems, all of which increase the potential for fire hazards.

Alarming Trends and Public Awareness Campaign

TNB's data reveals a threefold increase in detected power theft cases, rising from 610 in 2018 to 2,397 in 2024. This represents a nearly 300% surge in incidents. The public is urged to remain vigilant and report any suspicious signs, such as constant ventilation noises, empty buildings with unusually high power consumption, or frequent electrical work, which could indicate clandestine mining operations.

Implications for Malaysia

The substantial financial losses incurred due to power theft place a significant burden on Malaysia's power infrastructure and its citizens. This situation adds further pressure on the government to strengthen regulations and enforcement measures, especially as the popularity of cryptocurrencies continues to grow.

TNB's proactive approach, including real-time tracking and organized raids, signifies a more assertive stance against this escalating issue. The utility's success in curbing electricity theft will likely depend on its ability to maintain strong partnerships with law enforcement, regulatory agencies, and local communities.