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Malaysia’s national utility company has reported a huge financial loss caused by illegal electricity use for cryptocurrency mining. Tenaga Nasional Berhad (TNB) told parliament that power theft between 2020 and August 2025 amounted to more than 4.57 billion ringgit, or about $1.1 billion.
Investigators found 13,827 premises siphoning electricity from the grid to run mining rigs during that period. Officials say the scale of the theft threatens the stability of the country’s energy supply and financial health.
TNB’s report reveals the scale of illicit electricity consumption in Malaysia’s crypto mining sector. The energy and water transformation ministry said investigations identified 13,827 premises tapping electricity without authorization between 2020 and August 2025. These locations used stolen power to mine Bitcoin and other digital assets.
The illegal consumption resulted in losses worth more than 4.57 billion ringgit. Authorities view this as a serious drain on national resources. The ministry noted that the theft is concentrated in areas with high demand for cryptocurrency mining. It warned that unregulated mining can overload transformers and damage local distribution networks, creating safety hazards.
The energy ministry’s parliamentary filing described the activity as a threat to the national electric supply system and public safety. The losses also undermine the finances of the state‑owned utility, which needs revenue to maintain infrastructure and invest in renewable energy projects.
Facing rising losses, TNB has turned to technology and collaboration with law enforcement to counter illegal mining. The company has built an internal database of property owners and tenants suspected of involvement in electricity theft.
This registry allows inspectors to track suspicious sites and plan targeted raids. Officials said the database serves as a crucial reference for operational inspections, helping enforcement teams prioritise high‑risk locations.
The utility has also deployed smart meters and launched a Distribution Transformer Meter pilot program to monitor energy usage in real time. Smart meters at substations can detect abnormal spikes in electricity consumption and alert authorities. The transformer program measures power flows and helps identify manipulation at specific distribution points. By using these tools, TNB aims to detect theft early and reduce losses before they accumulate.
Enforcement attempts include many agencies. TNB collaborates with the energy ministry, police, communications regulator, and anti-graft agency to raid illegal mining operations. In August 2024, government officers raided and demolished over 900 mining rigs valued at nearly two million ringgit in a crackdown on illegal miners. These joint operations are a sign that Malaysian authorities take power theft seriously and are willing to take firm action.
Malaysia lacks dedicated laws that regulate cryptocurrency mining. Nonetheless, operators are required to be registered and comply with environmental and efficiency standards. Tampering with meters or bypassing connections remains a criminal offence under the Electricity Supply Act.
Under this law, the government can charge anyone who steals electricity, irrespective of the intended uses of the electricity. Since crypto mining is not banned when performed under the conditions of a regulatory framework, it is not a crime to mine, but the theft of power.
Authorities warn that illegal mining threatens public safety. High‑powered rigs running in concealed spaces can overheat and cause fires, while overloaded circuits may trip local grids. The energy ministry has stated that the scale of electricity theft jeopardises national economic stability and the integrity of the power supply. Malaysia seeks to protect its energy infrastructure by implementing existing laws and using surveillance technology to discourage potential criminals.
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