Malaysia’s electric utility provider 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 filing this week revealed that nearly 14,000 premises were found to have tapped power illegally since 2020, with operators bypassing or tampering with meters to run mining equipment without detection. Crypto Mining Crisis The Energy and Water Transformation Ministry said the scale of unauthorized consumption, worth RM4.6 billion (worth $1.106 billion), evidenced how the surge in crypto mining has strained national utilities, even in the absence of dedicated 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 rigs at targeted sites. Officials added that the utility has created an internal database that stores ownership and tenancy information for locations flagged for suspected power theft, giving investigators a centralized tool to monitor patterns of abnormal electricity usage. The ministry noted that this system now guides inspection efforts and helps identify operations attempting to evade billing. In addition, TNB is also rolling out smart meters at distribution substations to track real-time power flows and detect manipulation early. The government said these measures aim to tighten oversight as illicit 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 believed to be running illegal BTC operations. The suspects, three Malaysians and four foreigners, were detained in separate actions, and police confirmed that they had no prior criminal records. Investigators seized 52 mining rigs and related equipment of around RM250,000, as miners continue to seek low-cost or free power to stay competitive. Police had then noted that electricity theft, an offence 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 utility reported recurring power theft by mining operators. A joint raid there uncovered two linked sites allegedly stealing around RM30,000 in electricity each month, with 120 machines confiscated. The post Mayasia Hit By $1B Power Theft as Illegal Crypto Miners Drain the Grid appeared first on CryptoPotato .
