Malaysia is reeling from a startling revelation: its national utility, Tenaga Nasional Berhad (TNB), has incurred losses exceeding RM 4.6 billion (over US$1.1 billion) due to electricity theft by illegal cryptocurrency (mainly Bitcoin) miners. Between 2020 and August 2025, the authorities identified 13,827 premises using power illicitly to fuel mining rigs. (Reuters)
Rising Scale of the Problem
The scale of the theft is staggering, and has grown significantly in recent years. According to TNB and government sources, electricity theft linked to crypto mining has surged nearly 300% since 2018. (CoinDesk)
In a written parliamentary reply, the Ministry of Energy Transition and Water revealed that 13,827 premises were uncovered conducting illicit operations since 2020. (Yahoo News Malaysia) This isn’t just an isolated issue—it’s systemic.
How the Theft Happens
The methods used to steal electricity are bold and technically sophisticated. According to the Malaysia Energy Literacy Program, some operators tamper with meter boxes, adding extra wiring so that their rigs consume large amounts of electricity without registering on the meter. (melp.my)
TNB has reported that in 2020, some premises were losing RM 20,000–30,000 per month due to unmetered consumption. (st.gov.my) These are not simply small-time setups hidden in basements—many are operating from rented shop lots, warehouses, or even residential units. (The Star)
In one dramatic raid in Manjung district, police and TNB technicians seized 61 Bitcoin mining machines, along with network equipment, after discovering illegal high-load connections that bypassed standard meters. (Malay Mail)
Legal and Technical Constraints
While mining cryptocurrency is not illegal in Malaysia, the unauthorized modification or bypassing of electrical installations is. Such tampering violates the Electricity Supply Act, and offenders can face hefty penalties—including fines up to RM 1 million, or 10 years’ imprisonment. (Malay Mail) Other criminal charges, like theft and mischief under the Penal Code, may also apply. (tnb.com.my)
As explained in legal analyses, most illegal mining falls under Section 37 of the Electricity Supply Act 1990. (journals.mmupress.com)
How Authorities Are Responding
TNB and Malaysian authorities are not staying silent. They’re coordinating a multi-agency crackdown involving:
- Royal Malaysia Police (PDRM)
- Energy Commission (ST)
- Malaysian Anti-Corruption Commission (MACC)
- Local governments and other regulators (The Vibes)
One key measure is the establishment of a centralised database that tracks suspected premises (both owners and tenants). This allows TNB to flag high-risk sites for inspection. (The Vibes)
Technically, TNB is also deploying smart meters at distribution substations. These meters can detect abnormal consumption in real time, helping to spot meter tampering or bypass circuits. (Yahoo Finance)
In terms of policing, joint operations (sometimes codenamed “Ops Letrik”) have helped carry out thousands of inspections. According to The Star, over 2,488 raids took place under this operation, leading to the confiscation of more than 95,000 crypto-mining machines and nearly 1,000 detentions. (The Star)
Risks Beyond the Financial Loss
This isn’t just about money. The practice of illegal mining via tampered electricity poses real safety and infrastructure risks:
- Fire Hazards: Overloaded circuits and makeshift wiring can spark fires. (Malay Mail)
- Grid Instability: Abnormal high consumption, especially unmetered, puts stress on the local electricity infrastructure. (tnb.com.my)
- Public Safety: Illegal installations may be in buildings not built to support such heavy electrical load, risking damage to property or injury. (The Star)
Why It Is So Hard to Stop
Several factors make this issue particularly thorny:
- No specific crypto-mining law: As noted, mining itself is legal—but the theft mechanisms are not. (journals.mmupress.com)
- Sheer scale: With nearly 14,000 premises implicated, enforcement is a huge logistical challenge.
- Mobility of offenders: Mine operators often use rented spaces (shoplots, warehouses, even homes), making it easier to move or abandon operations when the heat is on. (The Star)
- Insider sophistication: Some setups demonstrate advanced electrical knowledge, which hints at well-organised criminal syndicates rather than just opportunistic miners. (melp.my)
- Monitoring gaps: Not all lines or substations are monitored in real time, limiting the ability to detect theft before it causes massive losses.
Notable Arrests and Raids
- In Perlis, police busted a mining operation causing RM 1.29 million in losses. They seized 42 mining rigs, routers, and related equipment. (NST Online)
- In Manjung, authorities confiscated 61 rigs after uncovering large-scale illegal draw from the grid. (Malay Mail)
- Earlier operations have also been successful: in 2022, a coordinated ST (Energy Commission) operation seized 349 Bitcoin machines from multiple premises, valued at over RM 2 million.
Broader Implications for the Energy Sector
This crisis is a wake-up call on several fronts:
- Grid Resilience: Persistent electricity theft undermines the financial stability of utilities like TNB, which can impact investment in infrastructure and maintenance.
- Regulatory Gap: The lack of crypto-specific electricity law means regulators must rely on general electricity theft legislation, which may not be sufficient given the scale and complexity of modern mining.
- Economic Cost: Losing billions in revenue isn’t just a corporate issue — it’s a drain on the public electricity system, potentially raising costs for honest consumers.
- Public Safety and Trust: With illegal wiring carrying fire risks, the stakes go beyond finances. There’s a real safety dimension for local communities and public trust in regulatory bodies.
Positive Steps Forward
Tackling this issue effectively requires both strong enforcement and technological innovation. Here are some promising actions:
- Expand Smart Meter Deployment: Accelerate installation of real-time monitoring at more substations to catch anomalies faster.
- Strengthen Legal Frameworks: While existing laws apply, Malaysia could consider tightening legislation to specifically address crypto-mining theft, making penalties more tailored and deterrents stronger.
- Data-Driven Enforcement: Use the central database to apply predictive analytics. By correlating suspicious premises, past raiding data, and energy-use patterns, TNB and regulators can be more proactive.
- Public Awareness Campaigns: Increase education on the dangers of illegal mining—not just the financial losses, but also fire risk, structural hazards, and legal consequences. TNB has already done some outreach. (The Vibes)
- Cross-Agency Task Forces: Continue and deepen collaboration between TNB, police, MACC, ST, and others. The joint operations so far have yielded results and must be sustained.
- Whistleblower Incentives: Encourage communities to report suspicious high-power activity by offering protections or incentives for whistleblowers.
Final Thoughts
The losses suffered by Tenaga Nasional Bhd underscore a hidden yet growing challenge: when modern technologies like cryptocurrency meet traditional utilities, the result can be a complex, high-stakes struggle between innovation and crime. The nearly US$1 billion hit to Malaysia’s national utility is more than a financial scandal — it’s a symptom of regulatory gaps, enforcement limitations, and the risks of a rapidly digitising economy.
If Malaysia can leverage technology, smarter regulations, and coordinated enforcement, it has a real opportunity to crack down on this shadow economy. But without decisive action, the cost — to TNB, to grid stability, and to public safety — will only climb.
Sources:
- Reuters / Yahoo Finance on TNB’s losses and premises involved (Yahoo Finance)
- The Star on the rise in power-theft raids and number of machines seized (The Star)
- Malay Mail reporting on joint operations and smart-meter deployment (The Vibes)
- CoinDesk on 300% jump in power theft since 2018 (CoinDesk)
- New Straits Times on a specific Perlis raid that netted RM 1.29 million in theft (NST Online)
- Malaysia Energy Literacy Program on how illegal miners are bypassing meters (melp.my)
- ST (Energy Commission) annual report on 2020 meter tampering and seizures (st.gov.my)
- Legal analysis of the Electricity Supply Act and penalties under Malaysian law (journals.mmupress.com)
- Reuters
