Power Theft Soars as Illegal Mining Spreads
Malaysia’s largest energy provider, Tenaga Nasional Berhad (TNB), has reported a staggering 300% increase in electricity theft linked to illegal cryptocurrency mining operations since 2018. The company revealed that the number of theft cases surged from 610 in 2018 to 2,397 by 2024, with offenders siphoning off subsidized electricity using tampered or bypassed meters.
In a public statement released Monday, TNB said the rapid rise in reported cases “reflects increasing public awareness of reporting on illicit crypto mining activities.” The utility company emphasized that these thefts are not just a financial burden but are also destabilizing Malaysia’s power grid.
Authorities Raid Underground Mining Operations
Responding to the surge, Malaysian authorities have ramped up enforcement efforts with a series of nationwide raids. In cooperation with regulators, anti-corruption officials, and local councils, law enforcement has dismantled multiple underground mining setups.
TNB credits these joint operations with helping to “safeguard the stability of the power grid.” Despite repeated requests, the company has not provided further comment on the long-term outlook of the problem or specific financial losses incurred.
Blast Reveals Bitcoin Operation in Residential Home
One recent incident underscored the scale and danger of these operations. In Bandar Puncak Alam, a fire broke out at a residential property on Lorong Cekara Purnama at 11:41 am, prompting a call from a local resident. By the time firefighters extinguished the blaze around 4:45 pm, they uncovered a sophisticated illegal Bitcoin mining operation.
Inside the home were nine mining rigs, blower fans, and a D-link router, all secretly connected to the power grid. The event served as a vivid example of how crypto miners are embedding operations in unsuspecting neighborhoods, often without the knowledge of property owners.
Smart Meters and Legal Penalties on the Rise
To address the growing issue, TNB has expanded the deployment of smart meters, which monitor real-time electricity usage via radio signals. This technology enables quicker detection of unusual consumption patterns, making it easier to flag potential theft.
The company has also urged stricter enforcement of Malaysia’s Electricity Supply Act, which imposes severe penalties for grid tampering. Violators face fines of up to $212,000 (RM1 million) or up to 10 years in prison, highlighting the seriousness of the offense.
Landlords Hit with Shocking Power Bills
TNB shared that some Malaysian landlords have discovered their properties turned into covert mining farms only after receiving massive electricity bills. In extreme cases, tenants using unauthorized rigs have racked up charges as high as $278,400 (RM1.2 million).
According to a 2024 U.S. Energy Information Administration study, a single crypto mining rig can consume between 1,000 watts (1 kW) and 8 kW of power, which puts significant strain on residential power systems and national infrastructure.
Police Seize Dozens of Machines in Northeast Raids
In another major enforcement action, Malaysian police recently shut down a Bitcoin mining operation in the Hulu Terengganu and Marang districts. Officers confiscated 45 mining machines worth approximately $52,145 (RM225,000) from two locations that were stealing electricity to power their setups.
Terengganu police chief Datuk Mohd Khairi Khairuddin stated that the stolen power had resulted in major losses for TNB. The raids were part of an ongoing effort to clamp down on energy theft and protect the grid from further damage.
Global Crypto Mining Crisis Spreads
Malaysia’s crackdown mirrors similar enforcement actions abroad. In Kuwait, authorities recently questioned 116 individuals after discovering more than 1,000 illegal crypto mining sites. Officials reported that these activities caused widespread blackouts and severely impacted the national power grid.
The crisis comes amid rising global demand for cryptocurrency and a search for cheap electricity. Malaysia, which reported an electricity production of 15,451 gigawatt-hours in December 2024, remains a popular target due to low power prices, with rates averaging just $0.052 cents per kilowatt-hour, according to CEIC Data.
As crypto mining operations continue to proliferate, countries like Malaysia face a growing challenge in balancing digital innovation with infrastructure protection. For TNB and local authorities, the battle against illegal power use is far from over.
