Malaysia Hits Illegal Crypto Mining After $1.1B Electricity Theft Exposed

Malaysia’s Tenaga Nasional Bhd (TNB) reported that illegal crypto mining caused more than RM4.6 billion (about $1.106 billion) in electricity theft since 2020.

A parliamentary filing showed that nearly 14,000 premises across the country tapped the Malaysia power grid without proper billing to run mining rigs.

The Malaysia energy ministry, now called the Energy and Water Transformation Ministry, said unauthorized consumption linked to Malaysia crypto mining placed a clear strain on the Malaysia power grid.

Officials said the losses came from operators who bypassed or tampered with meters to keep crypto mining operations off record.

At the same time, the figures brought TNB power theft into the policy spotlight. Lawmakers received the data as part of a formal response, which tied illegal crypto mining directly to the growing burden on national utilities.

Illegal Crypto Mining in Malaysia Fuels RM4.6 Billion Electricity Theft

According to the Malaysia energy ministry, the RM4.6 billion figure covers four years of unbilled usage tied to crypto mining operations.

Premises identified in the filing drew large amounts of power while paying only a fraction of what normal Bitcoin mining Malaysia activity would cost at commercial tariffs.

Investigators found that many sites used hidden connections to avoid standard meters. In other cases, teams discovered altered devices that showed artificially low readings while mining rigs consumed heavy loads in the background.

These patterns matched the typical profile of high-intensity electricity theft for illegal crypto mining .

TNB said the scale of TNB power theft created both financial and technical pressure. Transformers and distribution lines serving these crypto mining operations faced sustained stress, even though official records showed modest demand in the same areas.

Malaysia Crypto Mining Raids Target Thousands of Power Theft Sites

In response, authorities launched coordinated crypto mining raids at addresses flagged for suspicious usage.

The Malaysia energy ministry said Tenaga Nasional Bhd, the police, the communications regulator, and the anti-corruption commission now work together during inspections.

These joint teams can enter targeted premises and seize mining rigs when they find evidence of electricity theft.

As a result, illegal crypto mining setups risk losing both equipment and access to the Malaysia power grid when investigations confirm meter tampering or unbilled lines.

Moreover, the authorities concentrate on addresses showing sharp changes in consumption that do not fit normal residential or business patterns.

When power data reveals sudden spikes or drops, enforcement teams treat those sites as potential Malaysia crypto mining hubs and schedule them for checks.