Malaysia’s electric utility provider, Tenaga Nasional Bhd (TNB), reported losses exceeding $1 billion due to electricity theft associated with cryptocurrency mining over the past four years.

A recent parliamentary filing disclosed that nearly 14,000 premises had illegally tapped into power since 2020. Many operators exploited meter tampering techniques to run their mining equipment undetected.

Crypto Mining Crisis

The Energy and Water Transformation Ministry indicated that the unauthorized consumption, totaling RM4.6 billion (around $1.106 billion), reflects the strain that the surge in crypto mining has placed on national utilities, particularly in the absence of specific regulations governing the sector.

In response to this crisis, authorities have intensified their enforcement efforts by collaborating with TNB and several agencies, including the police and the communications regulator, to seize mining rigs from targeted locations.

Officials noted that TNB has established an internal database to compile ownership and tenancy details for locations suspected of power theft. This centralized database assists investigators in monitoring abnormal electricity consumption patterns, guiding inspection efforts for unauthorized operations.

Furthermore, TNB is deploying smart meters at distribution substations. These meters aim to track power flows in real-time, enabling quicker detection of manipulative activities. The government intends these initiatives to tighten oversight as illicit mining continues to pose risks to Malaysia’s energy infrastructure.

Crackdown

In August 2025, Malaysian authorities stepped up their crackdown on electricity theft linked to crypto mining, arresting seven individuals connected to illegal Bitcoin operations. The individuals, including three Malaysians and four foreigners, were detained during separate operations, and authorities confirmed they had no prior criminal records.

Investigators confiscated 52 mining rigs and equipment, totaling RM250,000 in value, amid the continuing search for low-cost or free energy to maintain competitiveness. The police have stated that electricity theft, classified as an offense under Section 33(5) of the Electricity Ordinance, can lead to fines of up to RM100,000 as well as potential imprisonment.

These arrests followed similar incidents in Sarawak, where local utilities reported ongoing electricity theft by miners. A joint raid uncovered two sites allegedly stealing about RM30,000 worth of electricity each month, resulting in the confiscation of 120 machines.