Malaysia Faces Escalating RM4.57B Power-Theft Crisis Tied to Illegal Crypto Mining From 2020–2025

Rising Electricity Losses and Expanding Crypto-Mining Crackdowns Across Malaysia

TL;DR

• Malaysia confirms RM4.57 billion (US$1.1 billion) in electricity losses tied to illegal crypto-mining across 13,827 premises between 2020 and August 2025.
• TNB reports theft cases jumping nearly 300% from 610 in 2018 to around 2,397 in 2024, with thousands of mining rigs seized.
• Officials warn the theft wave threatens grid stability, public safety, and economic integrity, even as industry voices push for a formal mining framework.

Malaysia’s mounting struggle with illegal crypto-mining intensified this year after the Ministry of Energy Transition and Water Transformation disclosed that 13,827 premises were caught siphoning electricity for mining operations between 2020 and August 2025, inflicting RM4.57 billion in losses on Tenaga Nasional Bhd (TNB), roughly US$1.1 billion. The figure surfaced in a parliamentary filing dated November 19, 2025, and underscores how widespread, organized, and persistent underground mining has become across multiple states. Government officials described the phenomenon as a direct threat to the national electricity system, public safety, and economic stability, noting that many operators actively bypass meters or tap directly into distribution transformers to evade detection. Their setups often involve industrial ventilation and concealed cooling systems hidden behind rented shophouses, residential blocks, or makeshift warehouses, enabling high-density mining rigs to run continuously without attracting attention.

TNB’s historical data traces the roots of the problem to several years earlier. Electricity-theft cases linked to crypto-mining climbed from 610 incidents in 2018 to approximately 2,397 by 2024, representing a near 300% surge. Between 2018 and 2023 alone, TNB estimated losses of at least RM3.4 billion tied to stolen power for mining equipment. From 2020 through 2024, the utility logged an average of 2,303 theft cases per year and received roughly 1,699 public complaints annually related to suspicious energy use. Officials said many miners believe they can operate undetected because meters are often absent from these covert facilities, leading them to assume the grid cannot monitor irregular consumption patterns. Several cases also revealed operators relocating frequently to avoid enforcement efforts, complicating TNB’s attempts to shut down clusters of repeat offenders.

Authorities have increasingly escalated their crackdown in response. TNB built an internal database documenting landlords and tenants at properties flagged for suspected illicit use, describing it as a key operational reference for inspections. Investigators also expanded deployment of smart meters and launched a Distribution Transformer Meter pilot program at substations aimed at identifying abnormal electricity flows in real time. Joint operations involving police, the Malaysian Anti-Corruption Commission, the Malaysian Communications and Multimedia Commission, and municipal councils have led to the seizure of thousands of mining machines, including one case earlier this year where an explosion revealed a hidden mining farm connected via stolen lines. Officials argue that the combination of low industrial electricity tariffs, regulatory ambiguity, and gaps in oversight has made Malaysia highly attractive for underground mining groups that move between districts quickly.

Regulators emphasize that crypto-mining itself is not illegal in Malaysia, yet tampering with meters or bypassing power infrastructure violates the Electricity Supply Act 1990, an offense punishable by fines of up to RM1 million, imprisonment of up to 10 years, or both. The absence of a dedicated licensing or tariff framework for mining has left the sector in a grey zone, with the Securities Commission Malaysia overseeing trading and custody of digital assets but not mining operations. Industry stakeholders, including the ACCESS Blockchain Association Malaysia, argue that establishing a formal regulatory structure could draw RM400 million to RM700 million in investment, generate up to 4,000 jobs, and contribute RM80 million to RM150 million in yearly tax revenue. They claim a structured environment could shift mining activity back onto the grid legitimately—potentially strengthening Malaysia’s role in the global hash-rate arena at a time when market participants track volatility in the crypto price index, shifting crypto price behavior, and broader changes across coin market cap metrics.

Officials warn that unchecked power theft continues to strain distribution networks and elevate fire-risk scenarios, especially when high-density GPU and ASIC installations run without proper electrical compliance. Investigators said the explosion earlier this year illustrated the type of hazard these covert operations pose to surrounding communities. Even as enforcement intensifies, the scale of Malaysia’s findings—spanning RM4.57 billion in losses, nearly 14,000 compromised premises, and multi-year surges in theft reports—suggests the country is confronting a major structural issue. Whether Malaysia focuses on containment, legalization, or a hybrid model remains unresolved, but policymakers increasingly acknowledge that the nation’s electricity grid and digital-asset ecosystem are now intertwined in ways that can no longer be ignored.

This article has been refined and enhanced by ChatGPT.