Malaysia’s Largest Energy Firm Reports 300% Rise in Crypto-Linked Power Theft

Malaysia’s largest energy firm, Tenaga Nasional Berhad (TNB), has reported a dramatic 300% increase in electricity theft cases linked to illegal cryptocurrency mining from 2018 to 2024. The number of detected cases rose from 610 in 2018 to 2,397 in 2024, with an average of about 2,303 cases annually between 2020 and 2024.

This surge is attributed to unauthorized crypto miners tapping directly into the power grid by tampering with or bypassing electricity meters, often operating covertly in rented shops, warehouses, or residential homes. These syndicates consume massive amounts of electricity-sometimes equivalent to an entire residential block-and frequently relocate to avoid detection.

The financial impact on TNB has been severe, with losses estimated at around 520 million Ringgit (approximately $121 million) due to these thefts, which also threaten the stability of the power grid.

To combat the problem, TNB has intensified joint enforcement operations with the Energy Commission, Malaysian Anti-Corruption Commission, police, and local councils, resulting in numerous raids and shutdowns of illegal mining setups.

The company has also expanded the deployment of smart meters that monitor electricity consumption in real-time via radio-frequency waves, enabling more efficient detection of suspicious usage patterns. Furthermore, TNB is exploring the use of artificial intelligence and predictive analytics to enhance detection capabilities.

Legally, tampering with electrical installations can lead to fines up to 1 million Ringgit ($232,000), imprisonment for up to 10 years, or both, under the Electricity Supply Act. Offenders may also face charges under the Penal Code for theft and mischief.

This issue reflects a broader global challenge as countries grapple with regulating and monitoring cryptocurrency mining to prevent power theft and maintain grid stability.

The country is facing a significant rise in crypto-linked power theft, costing the national utility hundreds of millions and prompting stronger enforcement and technological measures to safeguard the electricity supply.

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