Malaysia's national utility, Tenaga Nasional Berhad (TNB), has identified over $1.1 billion in losses stemming from electricity stolen to power cryptocurrency mining operations. This significant discovery spans approximately five years and comes as the country intensifies its crackdown on power theft targeting digital asset production facilities.
Details of Power Theft and Financial Impact
According to a parliamentary filing from the energy ministry dated Tuesday, TNB identified 13,827 premises that were illegally siphoning electricity between 2020 and August 2025. This illicit activity was dedicated to mining Bitcoin and other cryptocurrencies, resulting in financial losses for the utility company totaling at least 4.57 billion ringgit, which is equivalent to approximately $1.1 billion.
Ongoing Crackdown on Illicit Mining
Malaysia has been actively combating illicit crypto mining operations since 2018. The primary motivation behind these efforts is to mitigate soaring electricity costs associated with such activities. As part of this ongoing crackdown, local authorities in August 2024 destroyed over 900 Bitcoin mining rigs valued at nearly 2 million ringgit, or approximately $482,160.
Threats to National Systems and Economic Stability
The energy ministry has characterized this widespread electricity theft as a serious threat to the national electric supply system, public safety, and the overall economic stability of the country. In response to the growing problem, TNB has developed an internal database of property owners and tenants who are suspected of involvement in electricity theft. This database is intended to improve the identification and tracking of suspicious sites moving forward.
Technical Initiatives for Monitoring and Detection
The internal database serves as a crucial reference for identifying and monitoring potentially suspicious premises, forming the foundation for operational inspection actions, as detailed in the translated document from the energy ministry. On a technical level, TNB has implemented the deployment of smart meters and initiated the Distribution Transformer Meter pilot program at various energy substations. These initiatives are designed to enhance the monitoring of energy usage and to more effectively detect abnormal patterns that could indicate unauthorized power consumption for mining operations.
Widespread Issue Requiring Coordinated Efforts
The identification of 13,827 premises involved in electricity theft highlights the pervasive nature of this issue. Addressing this problem effectively requires coordinated enforcement strategies and robust monitoring systems to safeguard grid stability and prevent further revenue losses for the state utility provider.