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

Tenaga Nasional Bhd (TNB), the national power company of Malaysia, has disclosed devastating losses of over $1B due to unauthorized cryptocurrency mining activities that are draining power in Malaysia. The Energy and Water Transformation Ministry reported that the losses amounted to RM 4.57B, with 13,827 premises affected from 2020 to August 2025.

Spike in Power Theft: Electricity Stealing for Mining

The legalization of the illegal mining of Bitcoin is said to be a major contributor to the increase in electricity theft. These installations tend to interfere with or circumvent the conventional electricity meters—offenses that are subject to the Electricity Supply Act.

🚨 Malaysia reports over $1.1 billion in power losses linked to illegal crypto mining 🇲🇾

Authorities say 13,827 mining sites bypassed electricity meters, causing massive strain on the national grid. pic.twitter.com/OJnqx7jm7P

— Tim Asia Web3 (@timweb3_) November 20, 2025

TNB, with the help of the police, anti-corruption agencies, and regulators, has conducted joint raids. These have seen the mining rigs and other equipment of various premises suspected of electricity theft being seized.

Enforcement Measures: Tightening the Screws

TNB has introduced a multi-pronged enforcement program to reinforce detection and deterrence:

A data warehouse with information on the owners and tenants in the suspicious premises has been developed to assist in continuous monitoring.

Smart meters are gradually replacing the substation, and this will enable real-time monitoring of the energy flow in the substations to identify unusual consumption patterns.

The codename of the crackdowns, which are known as Ops Letrik (Operation Lightning), has intensified.

In one of the recent raids in the Manjung district, police seized 61 Bitcoin mining machines and networking devices in various locations on the pretext of extremely high electricity consumption.

#NSTnation Police seized 61 bitcoin mining machines, believed to be linked to electricity theft, through an integrated operation with Tenaga Nasional Bhd (TNB) at nine separate locations around the Manjung district yesterday. https://t.co/JI5JkGaPLE

— New Straits Times (@NST_Online) August 1, 2025

Legal Framework, Gaps, and Risks

Although cryptocurrency mining is not punishable in Malaysia, electrical installation is. According to the Electricity Supply Act, the maximum fine or 10 years' imprisonment can be imposed on the offender up to RM 1 million.

Specialists have also cautioned that these criminal activities are dangerous not only in terms of financial aspects but also safety concerns: there are illegal wiring, overheating equipment, and improperly controlled ventilation systems that lead to fire risks.

Alarming Trends and Public Call to Action

According to the data of TNB, the number of cases of detected power theft has increased threefold, namely, 610 in the year 2018, and 2,397 in the year 2024, which is almost three hundred percent. Citizens have also been encouraged to be more alert: the presence of 24/7 ventilation noises, empty buildings with abnormally high power consumption, or a high frequency of the electrical work may point to off-the-book mining.

What This Means for Malaysia

This loss is a big burden to the power infrastructure and the finances of the Malaysian population. Additional pressure on the government is to enhance regulation and enforcement, particularly with the continuity in the rise of popularity of cryptocurrency.

The activities of TNB, including real-time tracking to organized raids, imply a more proactive approach to the issue, which has been magnified over the past few years. The capability of the utility to reduce theft will, however, probably be reliant on the ability to sustain a partnership between law enforcement and the regulatory agencies and the communities of the area.

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