Malaysia’s national electricity utility has reported over $1.1 billion in losses since 2020.
The report follows the uncovering of 13,827 premises engaged in illegal cryptocurrency mining that bypassed electricity meters. The Ministry of Energy described the widespread theft as a serious threat to public safety, national economic stability, and the integrity of the country’s energy infrastructure.
Details of Illegal Cryptocurrency Mining in Malaysia
Tenaga Nasional Berhad (TNB) has identified around 14,000 locations nationwide, many of which are covert cryptocurrency mining farms where owners have tampered with electrical connections to avoid paying for power, according to official declarations and parliamentary disclosures. Malaysia allows cryptocurrency mining, however there are strict laws governing energy efficiency, environmental evaluation, and licensing. However, the illegal businesses circumvented these laws and hid their true purpose by breaking into the grid and evading official meters.
According to authorities, these activities put the public in danger as well as posing a risk of system overload and compromising the electricity supply for essential services. With losses of 4.6 billion ringgit ($1.1 billion), it is one of the biggest problems the nation’s energy industry has encountered recently.
Ministry’s Reaction
In collaboration with the Energy Commission, law enforcement, and anti-corruption organisations, the Ministry of Energy has increased enforcement since 2020. Police raids, asset seizures, the creation of a dedicated database to monitor suspect sites, and the capture of individuals involved in power theft are some of the measures. In the last several months, multi-agency operations have destroyed a number of illegal mining enterprises and confiscated the vehicles and equipment used in these schemes.
Furthermore, TNB installed advanced smart meters for real-time monitoring, which enables faster detection of unusual power use, a symptom of meter manipulation. To inform the public about the risks that illegal cryptocurrency mining poses to the neighbourhood and to motivate locals to report questionable activity, public awareness campaigns have been launched.
Despite these actions, officials warn that illicit mining remains a problem. Authorities are evaluating more technology developments and legislative modifications to prevent power theft and protect Malaysia’s critical infrastructure.
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