Malaysia has seen a dramatic increase in electricity theft over the past six years, with reported cases soaring by 300% between 2018 and the end of 2024. Authorities attribute this significant surge primarily to the proliferation of illegal cryptocurrency mining operations across the country.

According to reports citing statements from the national electricity utility Tenaga Nasional Berhad (TNB), the number of detected electricity theft cases rose sharply from 610 in 2018 to 2,397 by the end of 2024. The largest leap in these numbers was observed after 2020.

Illegal crypto mining has been identified as the main driver behind this escalating problem. While cryptocurrency mining itself is not banned in Malaysia, the act of tampering with electrical installations to steal power is strictly prohibited under Malaysian law, carrying severe penalties of up to a 1 million ringgit fine (approximately $232,720 USD) and up to 10 years imprisonment.

Authorities have been actively working to combat this issue through joint operations involving TNB, the Energy Commission, and the police. These nationwide efforts have focused on conducting raids and shutting down illegal mining setups found to be operating on stolen electricity. Based on statements from TNB (as reported by iGaming Times), the average number of crypto-related electricity theft cases detected annually between 2020 and 2024 was 2,303. Increased public awareness has also reportedly led to a rise in complaints about suspected illicit crypto mining activities.

Cryptocurrency mining, particularly for blockchains using a proof-of-work consensus mechanism like Bitcoin, is known to be energy-intensive. This creates a strong financial incentive for unscrupulous operators to bypass legitimate electricity meters and steal power to reduce their operating costs while still earning rewards in the form of new tokens.

The significant increase in detected electricity theft cases highlights a key challenge for Malaysia in managing the growth of energy-intensive digital asset activities. While the industry continues to develop, the illegal practices associated with some mining operations are placing a considerable burden on the country’s power infrastructure and leading to substantial financial losses. Authorities are expected to continue their intensified enforcement efforts to curb this issue and ensure that all mining activities, where permitted, are conducted legally and do not involve the theft of public resources.