Tenaga Nasional Sees 300% Surge in Crypto Mining Theft Cases

Malaysia's largest energy firm, Tenaga Nasional Berhad (TNB), has reported a significant 300% increase in electricity theft cases linked to illegal cryptocurrency mining operations over the past six years. The surge in theft cases, from 300 in 2018 to 2,397 by 2024, has been attributed to unauthorized miners tapping into subsidized electricity through tampered or bypassed meters. This illegal activity has not only cost the company hundreds of millions but has also destabilized the power grid.

TNB has been actively collaborating with authorities to shut down these illegal mining operations nationwide. The joint efforts have involved regulators, anti-corruption officers, and local councils, resulting in the dismantling of numerous underground mining setups. These enforcement actions have been crucial in safeguarding the stability of the power grid, according to TNB.

The rise in complaints reflects an increasing public awareness of reporting illicit crypto mining activities. Property owners in Malaysia have been particularly affected, with some receiving bills as high as $278,400 after discovering that their homes had been turned into covert mining farms by tenants setting up unauthorized mining rigs.

To combat this issue, TNB has expanded its "smart meter" network, which tracks electricity usage via radio signals and enables real-time detection of unusual consumption patterns. Additionally, TNB has called for stricter enforcement of Malaysia's Electricity Supply Act, which imposes penalties of up to $212,000 in fines or 10 years in prison for tampering with the grid.

The problem of illegal crypto mining is not unique to Malaysia. Other countries have also launched enforcement blitzes to address the strain on their national power grids caused by illegal mining activities. These actions highlight the global challenge of regulating and monitoring cryptocurrency mining to prevent power theft and grid instability.