tl;dr
Malaysia's largest electric utility, Tenaga Nasional Berhad (TNB), reports a nearly 300% increase in electricity theft linked to illegal crypto mining from 610 cases in 2018 to 2,397 in 2024. Unauthorized miners are siphoning subsidized electricity through tampered meters, costing TNB millions and d...
Malaysia's Tenaga Nasional Berhad (TNB) has reported a nearly 300% surge in electricity theft linked to illegal cryptocurrency mining from 2018 to 2024, with cases rising from 610 to 2,397. This spike has led to significant financial losses and caused instability within the national power grid.
In response, Malaysian authorities are conducting nationwide raids aimed at dismantling illicit mining operations. These enforcement efforts, in partnership with regulators, anti-corruption units, and local councils, have helped restore some stability to the power grid.
TNB has expanded its smart meter network to include real-time monitoring capabilities that detect unusual electricity consumption patterns indicative of tampering or bypassing. The utility is also advocating for stricter enforcement under Malaysia's Electricity Supply Act, which carries severe penalties such as fines up to $212,000 and prison terms up to 10 years for electricity theft offenses.
Some property owners have unwittingly hosted illegal crypto mining farms, resulting in exorbitantly high electricity bills reaching as much as $278,400 after covert operations were discovered in their homes. These mining farms typically consume between 1 kW and 8 kW of power per rig, contributing significantly to abnormal consumption.
Malaysia’s low electricity prices—averaging around $0.052 per kWh—and its high electricity production of over 15,000 Gigawatt-hours make the country an attractive destination for unauthorized crypto mining activities. This trend has not gone unnoticed globally; similar crackdowns are underway in countries like Kuwait, where over 1,000 illegal mining sites were recently uncovered, causing widespread blackouts and grid strain.
The growing awareness and enforcement highlight the broad challenges faced by utilities and governments worldwide in managing the electricity demands and regulatory compliance issues posed by rapidly expanding cryptocurrency mining operations.