Malaysia Uncovers $1.11 Billion Crypto Power Theft Spanning 13,827 Illegal Mining Sites

Tenaga Nasional Berhad (TNB) lost over $1.11 billion between 2020 and August 2024 due to illegal crypto mining operations that bypassed electricity meters across nearly 14,000 locations.

The Energy Ministry disclosed these shocking figures in a parliamentary filing on November 19, 2025. The scale of theft represents 4.57 billion Malaysian ringgit in lost revenue and highlights serious vulnerabilities in the country’s power grid infrastructure.

Massive Scale of Underground Operations

TNB identified 13,827 premises engaged in illegal cryptocurrency mining between 2020 and August 2024. These operations ranged from small residential setups to large-scale industrial facilities, all stealing electricity to power Bitcoin mining equipment.

The illegal mining operations primarily targeted Bitcoin, which requires enormous amounts of electricity to operate. Criminal groups established sophisticated networks across Malaysia, using rented warehouses, shops, and residential homes with minimal foot traffic to avoid detection.

These syndicates installed heavy-duty ventilation systems, air conditioning, and soundproofing materials to mask the noise and heat generated by mining equipment. To stay ahead of authorities, operations frequently relocated every few months, making enforcement challenging for utility providers and law enforcement.

Explosive Growth in Crypto-Related Power Theft

The problem has grown dramatically over recent years. Power theft cases linked to illegal crypto mining increased by 300% between 2018 and 2024. Detected incidents jumped from 610 cases in 2018 to 2,397 cases in 2024.

Between 2020 and 2024, TNB recorded an average of 2,303 electricity theft cases annually related to cryptocurrency activities. The utility company also received approximately 1,699 crypto-related complaints between January 2020 and December 2024, reflecting growing public awareness of illegal mining activities in their neighborhoods.

Earlier reports showed how losses escalated over time. In 2020, TNB reported relatively modest losses of 5.9 million ringgit. This figure exploded to 140.4 million ringgit in 2021, followed by 124.9 million ringgit in 2022 and 67.1 million ringgit in 2023.

Advanced Detection Technology Fights Back

TNB has responded to the crisis by deploying sophisticated monitoring technology. The utility company installed Advanced Metering Infrastructure (AMI) smart meters at distribution substations to detect unusual power consumption patterns in real-time.

These smart meters use high-precision monitoring to compare total energy entering electrical feeders against the sum of all customer meters downstream. This energy balance monitoring system can quickly identify when electricity is being stolen from the grid.

The smart meter system primarily uses Landis+Gyr E450 and Itron OpenWay meters with Power Line Communication and cellular backup systems. These devices can detect meter tampering, unusual temperature spikes, and phase imbalances that indicate illegal connections.

TNB also employs machine-learning models to identify suspicious 24/7 flat electricity loads that are typical of crypto mining operations. The system processes over 500 million meter readings daily from approximately 9 million meters nationwide.

Multi-Agency Enforcement Operations

Malaysian authorities have launched coordinated enforcement campaigns involving multiple government agencies. TNB works closely with police, the Malaysian Anti-Corruption Commission, the Energy Commission, and local councils to conduct raids and seizures.

These joint operations have successfully shut down numerous illegal mining setups and seized thousands of mining rigs. In August 2024, authorities arrested seven individuals running illegal Bitcoin operations, including three Malaysians and four foreigners.

The Electricity Supply Act of 1990 criminalizes meter tampering with penalties up to five years in prison and fines reaching 1 million ringgit. However, cryptocurrency mining itself remains unregulated, requiring only compliance with general energy efficiency and environmental rules.

TNB has created a centralized database tracking property owners and tenants suspected of electricity theft. This system helps authorities identify suspicious patterns and conduct targeted inspections rather than random searches.

Impact on Grid Stability and Digital Response

The massive scale of electricity theft poses serious risks beyond financial losses. The stolen power equals roughly 1.5 billion kilowatt-hours of unpaid electricity, creating strain on Malaysia’s national power grid and threatening system stability.

Energy ministry officials warn that illegal mining operations pose threats to public safety and economic stability. Unauthorized electrical connections can cause fires, electrocutions, and power outages affecting entire neighborhoods.

The problem particularly impacts residential customers who face higher electricity costs and service disruptions. Some property owners received shocking electricity bills ranging from 30,000 to 1.2 million ringgit after tenants engaged in illegal crypto mining without their knowledge.

Malaysia’s cheap electricity rates, ranging from $0.01 to $0.05 per kilowatt-hour, make the country attractive for crypto miners seeking to maximize profits. However, these subsidized rates are intended for legitimate residential and business use, not energy-intensive industrial mining operations.

While authorities have significantly improved detection methods and enforcement coordination, the cat-and-mouse game between illegal miners and regulators continues. The success of Malaysia’s response will depend on maintaining technological advantages and adapting quickly to evolving criminal tactics in the cryptocurrency space.