- Malaysia has lost over $1.1 billion to electricity theft by illegal crypto miners since 2020.
- Utility giant Tenaga Nasional, TNB, identified 13,827 premises involved in siphoning power from the national grid.
- Authorities are responding with smart meter surveillance and nationwide police raids.
Malaysia has suffered a massive financial loss due to illegal cryptocurrency mining. The national utility company, Tenaga Nasional Berhad (TNB), recorded over $1.1 billion in losses from electricity theft. These figures were disclosed by the Ministry of Energy and Water Transformation on Tuesday.
The Scale of the Power Theft: 13,827 Premises Involved
In a written parliamentary reply dated Nov. 18, the ministry revealed that TNB uncovered 13,827 premises that had been illicitly siphoning electricity for crypto mining between 2020 and August 2025.
The illegal consumption, largely tied to Bitcoin mining, resulted in an estimated 4.6 billion ringgit (US$1.11 billion) in lost revenue. Authorities say the issue has become severe enough to threaten the national energy supply system.
While crypto mining itself is legal in Malaysia, operators are required to undergo proper registration, environmental assessments, and energy efficiency checks. Power theft, including meter tampering or bypassing electricity connections, remains a criminal offence under the Electricity Supply Act.
How TNB Is Using Smart Meters to Stop Theft
To stem the rising threat, TNB has begun compiling a database containing full records of owners and tenants linked to premises suspected of electricity theft.
The ministry said the database has become a vital internal reference to track suspicious activity and guide operational inspections. Also, TNB has started installing ‘smart meters’ across electricity distribution substations to detect power manipulation in real time.
Notably, Joint enforcement operations involving the energy ministry, police, the national communications regulator, and the anti-graft agency have enabled authorities to seize thousands of Bitcoin mining machines from illegal sites.
Related: Malaysia Proposes Faster Crypto Listings and Stronger Rules for Exchange Operators
Police Raids Expand Nationwide
Malaysian police have intensified raids across multiple states since January, targeting underground crypto mining hubs. Bernama reported that eight men were recently arrested in northern Malaysia, with authorities confiscating mining rigs and several four-wheel-drive vehicles during the operation.
Officials warn that illegal crypto mining not only drains national resources but also poses safety risks and threatens economic stability.
With losses surpassing the billion-dollar mark, Malaysia is preparing further coordinated actions to safeguard its power infrastructure from illicit crypto operations.
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