Number of electricity thefts in Malaysia soared 300% between 2018 and end-2024, mainly due to the rise of illegal crypto mining

The cases were detected in joint operations that included electricity utility Tenaga Nasional Berhad (TNB), the country's largest, the Energy Commission and the police.

The number of electricity thefts uncovered in Malaysia between 2018 and 2024 is said to have increased by 300%, largely driven by the rise of illegal crypto mining in the Southeast Asian country, The Star reported on Monday.

The cases were detected in joint operations that included electricity utility Tenaga Nasional Berhad (TNB), the country's largest, the Energy Commission and the police.

“The operations have successfully shut down illegal mining setups, and detected cases rose from 610 in 2018 to 2,397 in 2024,” the utility said in a statement to the outlet.

Crypto mining is the process of discovering new blocks, verifying transactions and adding them to the blockchain that underpins digital assets. The process, especially for proof-of-work blockchains such as Bitcoin (BTC), is energy intensive, providing an incentive for unscrupulous miners to steal, rather than pay, for the electricity they use while reaping the reward in the form of new tokens for completing the process.

The largest leap in numbers occurred after 2020. Between 2020 and 2024, the average number of crypto-related electricity theft cases was 2,303 per year, TNB said. The number of public complaints also rose due to increased awareness of how to report the illicit crypto mining activity, TNB added.

Crypto mining is not banned in Malaysia, but anyone who tampers with electrical installations is liable to a fine of 1 million ringgit ($232,720.50) and up to 10 years imprisonment.

CoinDesk reached out to Tenaga Nasional Berhad for a comment.