Billions Lost to Crypto Mining Power Theft

Malaysia’s national utility firm Tenaga Nasional Berhad recorded losses of about RM 4.57 billion stemming from illegal electricity usage linked to cryptocurrency-mining operations between 2020 and August 2025. The Ministry of Energy Transition and Water Transformation disclosed that 13,827 premises were identified for unauthorised power use in bitcoin-mining setups.

The scale of the issue has triggered coordinated action by TNB alongside law-enforcement agencies, the communications regulator and the anti-corruption commission to shut down illegal crypto-mining hubs and recover mining equipment. Monitoring and detection systems have been upgraded, including the deployment of smart meters and a database of suspect premises created to track owner-tenant information.

The ministry emphasised that tampering with electricity meters or bypassing supply connections remains a breach of the Electricity Supply Act, even though crypto-mining per se is not illegal in Malaysia provided it meets regulatory registration, environmental assessment and energy-efficiency requirements.

Experts note that large-scale crypto-mining demands heavy and continuous power consumption, making utilities vulnerable to theft and grid stress. Analysts warn that if unaddressed, rampant unauthorised mining can undermine revenue streams, force higher tariffs for compliant users and increase risk of transformer or grid overload. TNB has reported that illicit mining not only deprives the utility of revenue, but often leaves behind damaged equipment, fire hazards and voltage instability.

TNB’s response includes launching a pilot “Distribution Transformer Meter” project that monitors usage at the transformer level to detect anomalies, and rolling out smart-metering at substations for real-time tracking of energy flows. These technical steps complement legal and enforcement action, with the utility and authorities conducting raids, seizing mining machines, and pursuing criminal charges under offences related to meter interference.

Regulators say the problem is acute because of Malaysia’s relatively affordable electricity and benign regulatory regime for data-centres, making it an attractive venue for crypto-miners operating on razor-thin margins for global digital-asset mining operations. Observers say tighter regulation globally of crypto-mining, along with rising power costs, have driven more miners to jurisdictions with weaker enforcement or cheaper energy. This trend adds urgency for utilities worldwide to bolster monitoring and enforcement frameworks.