Malaysia’s national utility Tenaga Nasional Bhd (TNB) has revealed losses exceeding RM4.57 billion (US$1.1 billion) between 2020 and August 2025 due to illegal electricity consumption linked to cryptocurrency mining, primarily bitcoin.
Deputy Prime Minister Datuk Seri Fadillah Yusof, who also serves as Energy Transition and Water Transformation Minister, disclosed that TNB identified 13,827 premises engaged in electricity theft during this period.
The illicit operations typically take place in rented shops, warehouses, or low-traffic residential properties.
Operators install heavy-duty ventilation systems, air conditioners, and soundproofing materials to avoid detection, while illegally bypassing electricity meters and tapping directly into the main grid.
These setups often consume power equivalent to entire residential blocks, and operators frequently shift locations to evade enforcement.
To counter the surge in theft, TNB has developed a comprehensive database containing detailed records of owners and tenants of premises suspected of electricity theft.
Fadillah said,
“This database plays a crucial role in identifying and monitoring suspicious premises and forms the basis for enforcement inspections.”
Coordinated operations involving TNB, the Energy Commission (ST), police, the National Anti-Financial Crime Centre, Malaysian Communications and Multimedia Commission (MCMC), CyberSecurity Malaysia, Inland Revenue Board (LHDN), local authorities, and the Malaysian Anti-Corruption Commission (MACC) have led to the seizure of bitcoin mining machines at implicated premises, effectively crippling illegal operations.
Technical measures have also been stepped up.
TNB is installing smart meters at distribution substations to enable real-time monitoring and rapid detection of meter tampering.
Under the Distribution Transformer Meter (DTM) Pilot Project, abnormal energy consumption patterns are tracked to identify potential theft.
Fadillah highlighted that TNB is exploring artificial intelligence and predictive analytics to continuously analyse consumption patterns and flag suspicious usage.
While crypto mining itself is legal in Malaysia, tampering with electricity meters or bypassing connections violates the Electricity Supply Act.
Power theft linked to illegal mining has surged dramatically, with detected cases rising from 610 in 2018 to 2,397 in 2024, marking a 300% increase.
Between 2020 and 2024, TNB received an average of 2,303 complaints annually regarding crypto-related electricity theft, reflecting growing public awareness of illicit mining activities.
Malaysia ranks among the top countries globally by Bitcoin hash rate share, yet unclear regulations continue to hinder the sector’s legitimate growth.
The ACCESS Blockchain Association projects that formalizing the mining industry could draw RM700 million (US$170 million) in hardware and infrastructure investments in 2025.
This can create approximately 4,000 jobs, and generate RM150 million (US$36 million) in annual tax revenue.
Source: Access Blockchain
Currently, no specific regulatory body governs the mining process.
Operators face uncertainty regarding electricity tariffs, licensing, and environmental compliance.
ACCESS recommends introducing dedicated mining licences, reforming landlord liability laws, and linking energy pricing to sustainability metrics.
The organisation also proposes Shariah-compliant mining models to encourage transparent governance and renewable energy adoption.
Beyond enforcement, TNB has rolled out public awareness campaigns through press releases, television segments, and various communication platforms to educate the public about electricity theft risks.
Stakeholder engagement sessions with MPs, ministries, the Energy Commission, and judicial officers aim to strengthen collaboration in combating illicit activities.
Fadillah emphasised the wider implications, stating,
“These activities not only endanger users' safety but also jeopardise the country's economic stability, increase public safety risks, damage property and pose a serious threat to the national power supply system.”
The scale of power theft highlights the tension between Malaysia’s emerging crypto mining industry and the national electricity grid.
While the sector offers economic potential, unregulated operations continue to strain infrastructure and prompt losses measured in billions of Ringgit (US$1.1 billion).
TNB’s combined approach of enforcement, technological monitoring, and public engagement represents the country’s most coordinated effort yet to safeguard the energy system from the shadow of underground mining networks.
The user assets of the on-chain trading terminal DEXX were stolen, and multiple meme coins experienced a large-scale crash in the early hours of this morning. The security company has not yet determined the specific amount of the theft, and there are rumors in the community that the current loss of assets has reached more than 16 million US dollars.
JinseFinanceThai authorities recently raided illegal crypto mining operations in two provinces, seizing devices worth $5 million and arresting three suspects for power theft.
MiyukiGame developer Rockstar Games finally released the official trailer for Grand Theft Auto VI (GTA 6) yesterday, announcing its scheduled release for 2025. Rumors suggested the game might introduce a cryptocurrency reward system
OliveExploring the aftermath of Nigeria's $246,153 crypto theft: arrests, recovery efforts, and the broader implications in the digital sphere.
Hui XinIn a disturbing development, cybercriminals have devised an innovative method to proliferate virus software, capitalizing on vulnerabilities within the BNB Smart Chain (BSC) smart contracts.
JasperJinwook Shin, the CEO of South Korea's Bitsonic crypto exchange, has been taken into custody by the South Korean police.
DavinA major American tech firm was recently hacked by a North Korean cybercriminal ring attempting to target its crypto-based customers.
BitcoinistThe government will instead focus on regulating the industry and supporting existing exchanges.
BeincryptoRussia is taking a step further by launching a national cryptocurrency trading platform to keep the asset class under official supervision.
CoinCultureThere're now playable NFTs on the game servers for Grand Theft Auto V and Minecraft.
Finbold