Malaysia’s national power utility, Tenaga Nasional Berhad (TNB), reported a 300% increase in electricity thefts linked to illegal crypto mining between 2018 and 2024, highlighting the severe impact of unauthorized mining operations on the country’s power infrastructure.
According to TNB, the number of crypto-related power theft cases rose from 610 in 2018 to 2,397 in 2024. Joint operations conducted with the Energy Commission, police, anti-corruption officials, and local councils were credited with uncovering and shutting down many of these operations.
In a statement, TNB emphasized that these actions have “safeguarded the stability of the power grid” and signaled continued enforcement efforts.
Smart Meters and Predictive Tech Deployed to Catch Offenders
Between 2020 and 2024, the utility received approximately 1,699 complaints related to illegal crypto mining, averaging 340 reports per month. The rise in public reports points to growing awareness about illicit mining activity and its effect on power systems.
To counter these threats, TNB has rolled out smart meters across affected areas. These devices record daily electricity usage and transmit data via radio-frequency waves, helping to detect unusual consumption patterns that may indicate illegal mining.
TNB is also looking to implement AI and predictive analytics to enhance theft detection and optimize enforcement strategies.
TNB Proposes Stricter Penalties for Electricity Tampering
In response to the escalating issue, TNB is advocating for tougher penalties under the Electricity Supply Act. Individuals found tampering with electrical systems could face fines of up to 1 million Ringgit ($232,000), 10 years in prison, or both.
Over $120 Million in Losses from Power Theft
Datuk Seri Mohd Shuhaily Mohd Zain, director of the Criminal Investigation Department (CID), revealed that TNB lost around 520 million Ringgit ($121 million) due to electricity theft—mostly from illegal crypto mining.
These operations are typically hidden inside rented shops, warehouses, or residential homes. To avoid detection, syndicates install ventilation systems, air conditioning, and soundproofing while bypassing electricity meters by tapping directly into the grid. In many cases, a single illegal mining operation consumes as much power as an entire residential block.
Syndicates often relocate every few months to avoid raids and maintain anonymity.
In one alarming case from February 2025, Malaysian police discovered a Bitcoin mining setup after a house explosion caused by an illegal power connection. Investigators found that the explosion resulted from a short circuit triggered by excessive power use for mining.
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