Malaysia Loses $1.1 Billion to Electricity Theft From Illegal Crypto Mining

Malaysia’s national utility company, Tenaga Nasional Bhd (TNB), has lost around $1.1 billion in electricity revenue due to the electricity theft by crypto miners between 2020 and August 2025. The illegal crypto mining facilities operating on 13,827 identified premises have been draining Malaysia’s electricity since 2020, and the energy ministry described these kinds of activities as a “serious threat to the national energy supply system.” The ministry said in a parliamentary reply tabled on Tuesday (Nov 18) that it identified 13,827 premises that were involved in illegal cryptocurrency mining, primarily Bitcoin, reportedly by using unauthorized electricity to operate mining hubs. The Energy Transition and Water Transformation Ministry assured that it is working along with TNB and multiple enforcement agencies to address theft and find a clear resolution. TNB also acknowledged the activity and created a database consisting of the records of owners and tenants suspected of stealing electricity to power their mining facilities. 

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The ministry stated that those activities not only threatened user safety but also jeopardised the nation’s economic stability, increased public safety risks, and posed a serious threat to the national energy supply system. 

Malaysia doesn’t have exclusive legislation targeting or making cryptocurrency mining illegal, but the miners are obliged to follow and comply with the government regulations, such as registration, environmental assessments, and energy efficiency audits, etc. Malaysian police are strengthening their operation against the crypto mining using unauthorized electricity. According to the latest information, several raids were carried out in suspected areas across the country since the beginning of 2025. The Bernama national news agency reported that the police arrested eight men in Northern Malaysia two weeks ago, and they seized Bitcoin machines and several four-wheel drive vehicles that were part of the illegal crypto mining.   

Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, said in July that, based on statistics since 2018, the total losses due to energy theft by illegal bitcoin mining activities were RM4.8 billion, a very large figure. Therefore, they needed to redouble their efforts to prevent that activity. He stated that statistically, in 2023 to 2024, a total of 2,399 cases had been recorded, while by June that year alone, it had reached 1,800 cases. He added that this situation posed a major challenge to law enforcement because perpetrators were increasingly daring to take risks in order to make a profit through illegal bitcoin mining.

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