Summary:
Malaysia’s national utility Tenaga Nasional Berhad (TNB) has lost more than RM 4.6 billion (~US$1.11 billion) in electricity revenue between 2020 and August 2025 because nearly 13,827 sites were illegally using power for crypto mining, according to the Ministry of Energy.
What Happened
- The Energy Transition and Water Transformation Ministry confirmed in a parliamentary reply that 13,827 premises were involved in unauthorized power use for crypto mining.
- These operations mainly targeted Bitcoin mining, though the broader issue applies to any energy-intensive cryptocurrency mining.
- The total energy theft amounted to RM 4.57 billion, as officially reported.
- Under Malaysian law (Electricity Supply Act), tampering with meters or bypassing them is illegal.
How Authorities Are Responding
- Raids & Seizures: TNB has conducted joint operations with the police, anti-corruption agency, and communications regulator to raid suspected mining sites and confiscate mining equipment.
- Database of Suspects: A database has been created to log owners and tenants of suspicious premises. This helps TNB to monitor, inspect, and prioritize enforcement actions.
- Smart Meter Rollout: TNB is installing smart meters at distribution substations to enable real-time monitoring of power usage and detect abnormal consumption spikes.
- Legal Enforcement: Offenders caught tampering with meters may face up to 10 years in prison or a RM 1 million fine, under existing electricity laws.
Why It’s a Big Deal
- Financial Loss: Over US$1 billion in electricity theft is a massive drain on the national power utility — money that could otherwise support grid maintenance, green energy transitions, or tariff reductions.
- Rapid Growth of Mining Syndicates: According to TNB, electricity theft linked to crypto mining has surged ~300% since 2018.
- Grid Risk & Safety: Illegal mining setups often run high-powered machines 24/7 with heavy ventilation — these pose safety risks (e.g., fire, overload) and compromise grid stability.
- Regulatory Gap: While mining crypto isn’t outright illegal in Malaysia, stealing electricity is. The law applies, but enforcement remains challenging due to the scale and sophistication of some operations.
- Reputation & Trust: Persistent power theft can erode public confidence in TNB and the government’s ability to regulate the burgeoning crypto-mining industry.
What’s Next
- More Raids Expected: Authorities are likely to intensify joint crackdowns (“Ops Letrik” and similar) to dismantle mining syndicates.
- Smart Meter Expansion: Accelerated deployment of smart meters could help detect and shut down illicit electricity usage more efficiently.
- Stronger Penalties or New Laws: The government may consider strengthening legislation specifically aimed at crypto-mining theft, or tighten penalties.
- Public Reporting: TNB and law enforcement may encourage the public to report suspicious consumption or meter tampering.
- Sustainable Mining Dialogue: The theft issue could spark broader debates on formalizing crypto mining under regulated power-tariff frameworks rather than driving it underground.
Bottom Line:
Malaysia’s power utility is facing a growing and expensive challenge: crypto miners bypassing meters, resulting in over US$1 billion in losses. The scale of the problem — nearly 14,000 premises implicated — underscores the tension between energy demand, illicit activity, and the need for robust regulatory and enforcement responses.
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