Malaysia's Electricity Theft Cases Surge 300% Due to Illegal Crypto Mining
1min read Malaysia has witnessed a significant surge in electricity theft cases, with a 300% increase from 2018 to the end of 2024. This alarming trend is primarily attributed to the rise of illegal cryptocurrency mining operations. The detection of these cases involved collaborative efforts between Tenaga Nasional Berhad (TNB), the country's largest electricity utility, the Energy Commission, and law enforcement agencies.
According to a statement released to The Star, joint operations and nationwide raids have successfully identified and shut down numerous illegal mining setups. The number of detected cases has risen from 610 in 2018 to 2,397 by the end of 2024. This dramatic increase underscores the growing problem of unauthorized cryptocurrency mining activities, which often involve the theft of electricity to power the energy-intensive mining processes.
Cryptocurrency mining, particularly for proof-of-work blockchains like Bitcoin, requires substantial amounts of electricity. This has created an incentive for some miners to steal electricity rather than pay for it, thereby reducing their operational costs and increasing their profits from mining new tokens. The largest spike in the number of cases occurred after 2020, with an average of 2,303 crypto-related electricity theft cases reported annually between 2020 and 2024. This period also saw an increase in public complaints, as awareness of how to report illicit crypto mining activities grew.
While cryptocurrency mining is not illegal in Malaysia, tampering with electrical installations is a serious offense. Those found guilty of such activities face severe penalties, including fines of up to 1 million ringgit and imprisonment for up to 10 years. These stringent measures aim to deter individuals and groups from engaging in illegal mining operations that exploit the country's electrical infrastructure.
