Malaysia’s national power utility, Tenaga Nasional Berhad (TNB), has revealed that illegal cryptocurrency mining has cost the company more than $1.1 billion in losses between 2020 and August 2025. The figure comes from a written response by the Ministry of Energy and Water Transformation, disclosed through Parliament and reported by the South China Morning Post, as cited by Wu 说区块链.
13,827 Cases of Meter Tampering
TNB reported that 13,827 individuals and operations illegally tapped into or bypassed electricity meters to run cryptocurrency mining equipment. These setups consumed massive amounts of power without payment, putting pressure on both TNB’s revenue and the country’s electrical grid.
Legal Gaps Slow Enforcement
While the Electricity Supply Act of 1990 prohibits electricity theft, Malaysian law does not specifically address power theft tied to crypto mining. As a result, violators are prosecuted under generic electricity theft rules—typically involving fines of up to RM 10,000 or possible jail time. Authorities say these penalties are too light for the scale and complexity of modern illegal mining operations.
Economic and Infrastructure Strain
The financial loss is only part of the problem. Illegal mining has disrupted energy supply in several regions, adding strain to TNB’s infrastructure. The utility has intensified raids in cooperation with police, but analysts warn the broader economic impact could be far greater.
Unchecked power theft undermines TNB’s margins, threatens the stability of regulated electricity pricing, and weakens energy security. Large illicit mining farms exploit Malaysia’s relatively cheap power, creating hidden costs that ultimately affect taxpayers and the national budget.
Government Ramps Up Countermeasures
The Energy Ministry says it is accelerating the modernization of grid monitoring by deploying smart meters capable of detecting unusual power usage and using AI-driven analytics to identify patterns consistent with mining activity.
Regulators and lawmakers are also calling for crypto-specific legislation, including clearer rules for mining operations, stricter penalties, and tighter licensing requirements. The newly disclosed TNB losses highlight the growing and often underreported cost of energy-intensive crypto mining in markets with low electricity prices.
Malaysia’s struggle reflects a global trend: as crypto values rise, miners increasingly seek out cheaper jurisdictions—often at the expense of national utilities. This dynamic is likely to push governments worldwide toward tougher regulations and higher entry barriers for energy-heavy mining projects.
