According to Malaysia’s main electricity provider, electricity theft for bitcoin mining has reached alarming levels.
Malaysia is facing a surge in electricity theft tied to bitcoin mining, with a 300% increase over the past six years, according to Tenaga Nasional Berhad (TNB), the country’s primary power supplier.
The company revealed that cases of electricity theft related to mining rose from 610 in 2018 to 2,397 in 2024. This surge is driven not only by more widespread mining operations but also by increased citizen vigilance in reporting suspicious activity.
To combat the growing threat, TNB has deployed a network of smart meters equipped with radio signal technology. These devices monitor consumption in real time, quickly detecting abnormal usage patterns typically associated with unauthorized mining operations.
Illegal operators have developed methods to bypass standard meters, taking advantage of subsidized electricity rates and compromising grid stability. Some unsuspecting property owners have received electricity bills as high as 1.2 million Malaysian ringgit (around $275,000), only to later discover their premises had been covertly converted into mining farms.
Malaysian authorities have stepped up their response, coordinating operations between regulators, anti-corruption units, and local law enforcement.
According to CEIC data, Malaysia reached a power generation capacity of 15,451 gigawatt-hours, with prices starting as low as $0.052. This availability of affordable energy has made the country an attractive target for miners. An analysis by the U.S. Energy Information Administration indicates that typical mining rigs consume between 1 kW and 8 kW of power.
Regulation
TNB is pushing for stricter enforcement of the Electricity Supply Act, which includes severe penalties for power theft, with prison terms of up to ten years or fines of up to 1 million Malaysian ringgit ($230,000).
“Bitcoin mining itself isn’t illegal in Malaysia,” clarified a TNB spokesperson, “but it must be conducted in compliance with existing laws and regulations, including the proper payment of commercial electricity tariffs.”
