Malaysia Loses Over $1 Billion to Illegal Cryptocurrency Mining

Highlights:

• Malaysia’s Tenaga Nasional Bhd lost over $1 billion from illegal cryptocurrency electricity theft.
• Authorities raided 13,827 sites and seized Bitcoin mining machines, shutting down unlawful setups.
• TNB deploys smart meters and AI systems to detect suspicious electricity usage patterns.

Malaysia’s national utility company Tenaga Nasional Bhd (TNB) reported losses above $1 billion due to unlawful electricity use linked to cryptocurrency mining from 2020 until August this year, according to the energy ministry. TNB reported that 13,827 locations were found using electricity illegally for cryptocurrency mining during this period. The ministry noted that these cases involved property owners or tenants who connected to the power supply through unauthorized methods that allowed them to bypass official billing.

Cracking Down on Illegal Mining to Protect Malaysia’s Power Grid

Investigations also confirmed that cryptocurrency mining is allowed, but bypassing meters or changing power lines breaks the Electricity Supply Act. Officials warned that this ongoing problem needs stricter steps to avoid extra pressure on the country’s power system.

A combined operation has been running as Tenaga Nasional Bhd worked with different enforcement bodies, including the Energy Commission and the police, to stop continuous electricity theft. The Malaysian Anti-Corruption Commission and local councils also joined in checking sites linked to the illegal use of power.

Malaysia’s Ministry of Energy said national utility TNB has lost over $1.1 billion from electricity theft by crypto miners between 2020 and August 2025, with 13,827 sites found illegally modifying or bypassing meters to power mining operations. https://t.co/MrbAWpHBZD

— Wu Blockchain (@WuBlockchain) November 19, 2025

Raids caught Bitcoin mining machines at the targeted locations. Officers shut down many illegal setups, taking large amounts of electricity without permission. Authorities said this gave quick relief to stressed parts of the power grid.

Mining cryptocurrency needs strong computers that work nonstop and use a lot of electricity. Some illegal miners avoid meters, connect directly to power lines, or tamper with distribution boxes so their electricity use is not recorded. Reports from Malaysian authorities and energy experts show that these illegal miners often move locations quickly. Many illegal miners run their operations for months before authorities catch them and causing Tenaga Nasional to lose millions in unpaid electricity each time.

TNB Strengthens Monitoring to Stop Illegal Bitcoin Mining

Tenaga Nasional Bhd built a database with full owner and tenant information for places suspected of illegal use. “In an effort to curb this issue, a database that stores complete records of owners and tenants of premises suspected of being involved in electricity theft related to Bitcoin mining activities has been established by TNB,” the ministry said. The database helps track and check places that might be using electricity illegally. It also guides teams when carrying out inspections.

Officials are putting smart meters at substations to catch illegal electricity use. The meters watch energy and can show hidden mining machines using power. Tenaga Nasional Bhd will use artificial intelligence to find unusual patterns. The system checks the electricity all the time and shows places that need inspections.

Although authorities have closed many illegal cryptocurrency mining setups, many miners keep working secretly. The high profits from crypto mining and the challenge of spotting tampered connections make it hard to stop them.