Mayasia Hit by $1 Billion Power Theft as Illegal Crypto Miners Drain the Electricity Grid

Malaysian authorities launched coordinated raids after discovering widespread meter tampering by mining companies at thousands of sites since 2020.

Malaysian electricity supplier Tenaga Nasional Bhd (TNB) revealed that it has suffered losses of more than $1 billion due to increased electricity theft linked to cryptocurrency mining over the past four years.

A parliamentary submission this week revealed that almost 14,000 buildings have illegally tapped power since 2020, with operators bypassing or tampering with meters to allow mining equipment to operate without detection.

Crypto mining crisis

The Ministry of Energy and Water Transformation said the scale of illicit consumption, worth RM4.6 billion (worth US$1.106 billion), shows how the wave of crypto mining has put pressure on national utilities even in the absence of specific regulations for the sector.

According to the ministry, authorities have stepped up coordinated enforcement by allowing TNB and multiple agencies, such as the police, the communications regulator and the anti-corruption commission, to seize mining platforms at targeted locations.

Officials added that the utility has created an internal database that stores ownership and rental information for locations flagged for suspected power theft, giving investigators a centralized tool to monitor patterns of abnormal electricity use. The Department noted that this system now guides inspection efforts and helps identify operations that attempt to evade billing.

In addition, TNB is also rolling out smart meters at distribution stations to monitor power flows in real time and detect manipulation at an early stage. The government said these measures aim to tighten oversight as illegal crypto mining continues to pose financial and operational risks to Malaysia’s energy network.

Crackdown

Last August, Malaysian authorities intensified their crackdown on electricity theft linked to cryptocurrency mining, arresting seven individuals suspected of running illegal BTC operations. The suspects, three Malaysians and four foreigners, were detained in separate operations and police confirmed they had no previous criminal record.

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Investigators have seized 52 mining rigs and related equipment worth about RM250,000 as miners continue to look for cheap or free power to stay competitive. Police had then noted that theft of electricity, an offense under Section 33(5) of the Electricity Ordinance, carries fines of up to RM100,000 and possible jail time.

The arrests followed similar findings in Sarawak, where the state-owned utility reported recurring power thefts by mining companies. A joint raid there uncovered two linked sites that allegedly steal about RM30,000 worth of electricity every month, with 120 machines seized.