Malaysia’s national utility, Tenaga Nasional Bhd (TNB), has lost more than $1.1 billion to illegal electricity use by cryptocurrency miners between 2020 and August 2024, the energy ministry reported. Authorities seized mining equipment at 13,827 premises during this period.
While cryptocurrency mining is legal in Malaysia, tampering with electricity meters or bypassing power connections is illegal under the Electricity Supply Act. TNB has worked with the Energy Commission, police, anti-corruption authorities, and local councils to identify and shut down these operations.
The raids uncovered mining setups in rented shops, warehouses, and residential homes. Many were equipped with ventilation, air conditioning, and soundproofing to avoid detection. The operations illegally tapped into the main power grid, consuming electricity equivalent to entire residential blocks.
TNB has installed smart meters at substations and plans to use artificial intelligence and predictive analytics to monitor energy consumption and detect theft in real time. Authorities also maintain a database of suspected premises to support inspections.
Power theft linked to crypto mining has surged in recent years. Detected cases rose 300% between 2018 and 2024, increasing from 610 to 2,397. Between 2020 and 2024, TNB received around 1,699 complaints about crypto-related electricity theft each year.
Industry groups say formalizing crypto mining could benefit Malaysia’s economy. The ACCESS Blockchain Association estimates that licensed operations could generate 700 million Ringgit in hardware and infrastructure investments, create 4,000 jobs, and contribute 150 million Ringgit in annual tax revenue.
However, unclear regulations on electricity tariffs, licensing, and environmental compliance continue to leave many legal operators under the radar. ACCESS recommends introducing dedicated mining licenses, reforming landlord liability laws, and implementing energy pricing tied to sustainability, including Shariah-compliant mining models.
