⚡ Malaysia Loses Over $1.1 Billion to Illegal Crypto Mining — National Grid Faces Growing Crisis

Nearly 14,000 sites were stealing power as miners tapped into the grid undetected. Authorities say the situation is reaching breaking point.

Malaysia’s largest electric utility, Tenaga Nasional Bhd (TNB), has revealed staggering losses of more than $1.1 billion due to illegal cryptocurrency mining since 2020. Investigations uncovered nearly 14,000 premises siphoning electricity without authorization — a scale that officials describe as a national crisis.

The surge in crypto mining has put severe stress on Malaysia’s power grid. Many operators bypassed meters, tampered with wiring, or altered transformer connections to consume massive volumes of electricity unnoticed. Authorities say the issue exposes both regulatory blind spots and infrastructure vulnerabilities.

🚨 Government Steps In: Coordinated Crackdown Begins

The Energy and Water Transformation Ministry has initiated a nationwide enforcement effort, enabling TNB to work alongside:

• 👮‍♂️ Police
• 📡 The national communications regulator
• 🕵️ The anti-corruption commission

Key actions include:

• 🔌 Seizing mining rigs from targeted illegal operations
• 📍 Developing a centralized database of suspicious premises showing abnormal electricity patterns
• 📊 Deploying smart meters at distribution substations for real-time monitoring and tamper detection

Officials say these measures are essential to protect grid stability and prevent further financial losses.

🔍 Recent Raids Reveal the Scale of Abuse

In August, authorities arrested seven individuals connected to unauthorized Bitcoin mining — three Malaysians and four foreign nationals. Investigators seized 52 mining rigs worth approximately RM250,000.

Meanwhile in Sarawak, recurring power theft was discovered at two separate sites, where 120 mining machines were stealing roughly RM30,000 worth of electricity per month.

These cases highlight an ongoing pattern: miners exploiting cheap electricity — or outright stealing it — to remain profitable.

⚠️ Experts Warn: The Problem Won’t Fix Itself

Energy specialists caution that without stronger regulations and continuous monitoring, illegal mining will persist. Left unchecked, it may continue to:

• 💸 Drain national revenue
• ⚡ Stress infrastructure to dangerous levels
• 🛠️ Undermine long-term grid modernization plans

Smart meters and centralized tracking systems are seen as crucial tools for stopping future theft and restoring the integrity of Malaysia’s energy ecosystem.

⚡ TL;DR

Malaysia has lost over $1.1B in electricity to illegal crypto mining since 2020. Nearly 14,000 sites were stealing power by bypassing meters or tampering with connections. Authorities are now coordinating a nationwide crackdown, deploying smart meters, seizing rigs, and building a centralized monitoring system. Experts warn that without tighter regulation, illegal mining could remain a major threat to the country’s energy infrastructure.