Illegal Crypto Mining Drives 300% Surge in Power Theft Across Malaysia

Malaysia has experienced a significant increase in electricity theft, with cases rising by 300% from 2018 to 2024, primarily due to unauthorized cryptocurrency mining operations. Data from Tenaga Nasional Berhad (TNB), the country’s largest electricity utility, reveals that detected incidents escalated from 610 in 2018 to 2,397 in 2024. This surge is attributed to illicit miners tapping into the power grid without authorization, often by tampering with electrical installations to avoid detection.

The increase in illegal mining activities has prompted joint enforcement actions involving TNB, the Energy Commission, the police, the Malaysian Anti-Corruption Commission, and local councils. These coordinated efforts have led to nationwide raids, successfully dismantling numerous unauthorized mining setups. Between 2020 and 2024, TNB reported an average of 2,303 electricity theft cases annually linked to cryptocurrency activities.

While cryptocurrency mining is not prohibited in Malaysia, tampering with electrical infrastructure is a serious offense. Individuals found guilty of such actions face penalties of up to 1 million ringgit (approximately $232,720.50) and a maximum prison sentence of 10 years.

The proliferation of illegal mining operations not only results in substantial financial losses for utility providers but also poses risks to the stability of the national power grid. As Malaysia continues to grapple with the challenges posed by unauthorized cryptocurrency mining, authorities are emphasizing the importance of legal compliance and the implementation of stricter enforcement measures to safeguard the country’s energy resources.