Malaysia’s national utility, Tenaga Nasional Berhad (TNB), has revealed losses exceeding $1.1 billion from electricity theft linked to illegal cryptocurrency mining operations over the last five years. The discovery highlights the country’s escalating battle against unauthorized power consumption.

Scale of the Illicit Operations

In a parliamentary filing, the nation’s energy ministry reported that TNB identified 13,827 premises illegally siphoning electricity between 2020 and August 2024. The total financial damage is estimated at a minimum of 4.57 billion ringgit, or roughly $1.1 billion. The ministry emphasized that this activity poses a significant threat not only to the national power grid and public safety but also to Malaysia’s economic stability.

Authorities have been actively cracking down on these illicit crypto mining farms since 2018 to curb soaring energy costs. As part of these efforts, local officials confirmed the destruction of over 900 bitcoin mining rigs in August 2024, which were valued at nearly $500,000.

New Measures to Combat Theft

To better address the problem, TNB has developed an internal database to track property owners and tenants suspected of involvement in electricity theft. According to the energy ministry, this database serves as a crucial reference for monitoring suspicious locations and planning future inspections.

On the technical side, TNB is deploying advanced solutions to detect irregular energy use. The utility has begun installing smart meters and launched a pilot program called the “Distribution Transformer Meter” at substations. These tools are designed to provide more granular data on energy distribution, making it easier to identify and investigate abnormal consumption patterns consistent with illegal mining.