Malaysia's illegal electricity theft for mining spirals out of control: 4.57 billion MYR in electricity stolen illegally over 5 years

The national electricity company Tenaga Nasional Berhad (TNB) recently submitted a report to Parliament revealing the astonishing scale of Malaysia’s illegal cryptocurrency mining industry. Over the past 5 years (August 2020 to August 2025), electricity losses caused by illegal mining have totaled 4.57 billion Ringgit, approximately 1.1 billion USD.

Shocking Scale of Electricity Theft

TNB’s investigation data shows that law enforcement agencies have uncovered a total of 13,827 illegal sites. These mining farms illegally utilize electricity on a large scale through methods such as meter tampering and private wiring to mine Bitcoin and other cryptocurrencies. The Ministry of Energy, Technology, Science, Climate Change and Environment (PETRA) stated in a written response that behind each detected illegal mining site are complex wiring networks, indicating that the issue has formed a systemic industrial chain.

This not only represents a direct loss of national resources but also threatens the stability of Malaysia’s overall power supply, public safety, and economic health. Analysis indicates that the uneven load on the power grid caused by illegal mining could trigger widespread power outages.

Law Enforcement Continues Upgraded Campaigns

Malaysian authorities have been cracking down on illegal mining sites since 2018. In recent years, enforcement efforts have significantly increased, with the most high-profile destruction operation in August 2024—law enforcement used bulldozers to destroy 985 mining machines, involving equipment valued at 1.97 million Ringgit (about 450,000 USD).

To accurately identify suspicious sites, TNB has established an internal database compiling information on properties and tenants suspected of electricity theft. At the same time, TNB has deployed a large number of smart meters and is piloting a “distribution transformer meter” monitoring program at substations, tracking abnormal electricity usage through high-resolution data to intercept illegal activities before they expand.

Strict Legal Consequences

Although Bitcoin mining itself is legal in Malaysia, electricity theft is strictly regulated under the Malaysian Electricity Supply Act. Unauthorized tampering with power lines that could cause harm to life and property constitutes a crime. First-time offenders can be fined up to 1 million Ringgit (about 220,000 USD) or face up to 5 years in prison; serious cases can be fined up to 5 million Ringgit (about 1.14 million USD) or imprisoned for up to 10 years, or both.

This series of strict measures demonstrates that the Malaysian government regards electricity theft for mining as a major crime affecting national interests and people’s livelihoods, determined to curb this illegal wave through both legal and technological means.