Illegal Bitcoin Mining Drains Malaysia’s Grid: TNB Sounds the Alarm
Malaysia’s state electricity provider, Tenaga Nasional Berhad (TNB), has reported a nearly fourfold increase in power theft resulting from illegal crypto mining operations over the past six years.
Malaysia’s largest electricity provider, the state-owned Tenaga Nasional Berhad (TNB), has reported a sharp spike in power theft linked to illegal crypto mining operations.
According to an official statement, the number of recorded incidents rose nearly 300%, from 610 cases in 2018 to 2,397 in 2024.
TNB flagged several key risks associated with underground mining activity, including:
- Infrastructure damage
- Grid overload
- Negative impacts on legitimate consumers
The primary method of theft involves direct connections to the power grid, bypassing official channels and meters. Illegal miners tap into state-subsidized electricity without paying, leading to significant financial losses and straining the energy infrastructure.
According to TNB, such operations have caused hundreds of millions of dollars in damage. To combat the issue, authorities have launched joint raids involving energy officials, anti-corruption agencies, and local governments.
As a result of these coordinated efforts, investigators have identified and shut down numerous underground mining farms across the country.
Related: US-Listed Crypto Miners Doubled Their BTC Holdings in a Year
How TNB Is Tackling Illegal Crypto Mining
In response to the rise in unauthorized electricity usage, TNB has launched a large-scale deployment of smart meters capable of detecting abnormal consumption patterns in real time. These insights help flag suspicious activity and send alerts to the authorities.
In addition to technical measures, TNB is calling for stricter enforcement of Malaysia’s Electricity Supply Act. Under current law, unauthorized connections to the grid can result in:
- Up to 10 years in prison
- Fines of up to 1 million Malaysian ringgit (around $212,000).
TNB argues that only a combination of technology and tough legal penalties can effectively curb illegal mining, now seen as a serious threat to the country’s energy infrastructure.
Related: Fake Bitaxe Miners Are Everywhere — and That’s a Big Problem
Why Crypto Mining Poses a Threat to Energy Security
The surge in illegal mining across countries with cheap or subsidized electricity is evolving from a local concern into a systemic issue. In Malaysia, the scale of electricity theft has reached a level that threatens grid stability and causes hundreds of millions of dollars in losses for utility providers.
This trend is also driven by growing global interest in digital assets and easier access to mining hardware. As a result, Malaysia, like several other countries with low electricity costs, has become a hotspot for unauthorized crypto mining.
This case serves as a warning to other nations, especially those with subsidized tariffs and limited tools for monitoring consumption. Without proper oversight, illegal mining can overwhelm energy systems and destabilize regional economies.
Related: Who Really Controls Bitcoin? Inside the Centralization of Mining in 2025
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