Malaysia's TNB Reports 300% Increase in Electricity Thefts Linked to Illegal Crypto Mining

According to TNB, the number of crypto-related power theft cases rose from 600 in 2018 to 2,397 in 2024.

A report by national power utility Tenaga Nasional Berhad (TNB) has revealed a staggering 300% surge in electricity thefts linked to illegal crypto mining activities between 2018 and 2024. The revelation underscores the severe impact of unauthorized mining operations on the country's power infrastructure.

According to TNB's data, the number of crypto-related power theft cases surged from 610 in 2018 to a staggering 2,397 in 2024. These cases were uncovered and shut down through joint operations carried out by TNB, the Energy Commission, police, anti-corruption officials, and local councils.

In a statement, TNB emphasized that these actions have "safeguarded the stability of the power grid and signaled the company's ongoing efforts to combat theft and maintain a sustainable energy future."

The utility also received 1,699 complaints from members of the public regarding illegal crypto mining activities between 2020 and 2024, averaging 340 reports per month. The rise in public complaints underscores the growing awareness about the issue and its effect on the community.

To counter these threats, TNB has rolled out smart meters across affected areas. These devices record daily electricity usage and transmit data via radio-frequency waves, aiding in the detection of unusual consumption patterns that may indicate illegal mining operations.

Furthermore, TNB is exploring the implementation of AI and predictive analytics to enhance theft detection and optimize enforcement strategies.

In response to the escalating issue, TNB is proposing stricter penalties under the Electricity Supply Act for individuals found tampering with electrical systems. The proposed penalties could include fines of up to 1 million Ringgit ($232,000), 10 years in prison, or both.

Discussing the issue further, Datuk Seri Mohd Shuhaily Mohd Zain, director of the Criminal Investigation Department (CID), mentioned that TNB suffered losses of approximately 520 million Ringgit ($120 million) due to electricity theft, largely attributed to illegal crypto mining.

These operations are typically set up in rented shops, warehouses, or residential homes to avoid detection. The syndicates install ventilation systems, air conditioning, and soundproofing to muffle the noise from the mining rigs while tapping directly into the electricity grid to bypass meters. In many cases, a single illegal mining operation consumes as much power as an entire residential block.

Syndicates are known to relocate every few months to evade raids and maintain anonymity. In one case reported in February, Malaysian police discovered a Bitcoin mining setup after a house explosion caused by an illegal power connection.

Investigators found that the explosion, which injured two people and damaged two houses, was triggered by a short circuit due to the excessive power use for mining. The incident occurred after the 38-year-old suspect, a restaurant worker, allegedly connected an electrical cable from a nearby transformer to his house to power Bitcoin mining rigs in his basement.