Crypto Mining Causes $1.1B Electricity Losses Across Malaysia’s TNB Network

• Crypto miners caused electricity losses exceeding $1.1 billion.
• Over 13,800 premises are involved in widespread power theft operations.
• Authorities intensified coordinated raids targeting illegal mining networks.
• Meter tampering remains punishable under Malaysia’s electricity laws.

Malaysia’s Ministry of Energy has raised concerns over a surge in electricity theft linked to crypto mining operations nationwide. Officials confirmed that utility provider Tenaga Nasional Bhd (TNB) recorded losses of more than US$1 billion from illegal power use between 2020 and August 2025.

Most cases involved operators running mining rigs nonstop while avoiding proper billing. The ministry said the rise in incidents put additional pressure on the grid and created financial strain for the utility.

Investigators found that many operators hid their activities by tampering with meters or rerouting wiring to mask consumption. These setups drew heavy power loads and ran quietly across residential, industrial, and commercial areas. TNB identified 13,827 premises involved in illegal usage during the period. Many sites blended into neighbourhoods, making detection difficult during routine checks.

Source: @bitcoinmalaya

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Authorities Target Illegal Mining Networks

The government calculated the total losses at 4.6 billion ringgit, about US$1.11 billion. Officials asserted that unregulated usage not only affects the energy provider it also poses risks for blackouts. These mining rigs tend to drain transformers if not controlled. Spikes in usage usually inform personnel about suspected theft.

To address the issue, TNB increased cooperation with enforcement agencies. Teams conducted raids with the police, communications regulator, anti-corruption agency, and other authorities. These operations targeted areas showing unusually high electricity demand. Many sites housed large numbers of mining machines running without proper metering. Enforcement teams seized equipment where tampering was found.

The ministry said these joint efforts shut down some large-scale operations.. However, some operators tend to relocate their equipment to evade full containment. It has been observed that with stricter mechanisms, mining syndicates have yet to be fully detected.

Legal Actions to Rein In Crypto-Linked Offences

Although Malaysia does not have a dedicated framework for crypto mining, there is no doubt about its illegality regarding meter tampering or energy bypassing, which is regulated by Malaysia’s Electricity Supply Act. TNB, in many instances, traces these crimes through irregular patterns linked to possible energy bypassing.

Officials said the government will continue tightening enforcement because power theft remains significant. TNB will also improve its monitoring equipment to enable faster identification of any suspected theft. The ministry described electricity theft as a serious offence that drains public resources and weakens national infrastructure, making continued enforcement a priority.

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