Malaysia’s Power Grid Under Siege: Illegal Crypto Mining Thefts Surge 300% Since 2019
Energy authorities sound alarms as electricity theft for underground mining operations outpaces regulatory crackdowns. The trend mirrors global patterns—where cheap power and lax enforcement create perfect conditions for parasitic crypto operations.
Grid operators report entire neighborhoods blacked out by jury-rigged mining farms siphoning megawatts. Meanwhile, legitimate data centers pay market rates (plus those carbon offsets Wall Street loves to bundle into ESG funds).
One silver lining? At least these miners aren’t dumping ASICs on the secondary market... yet.
TNB Deploys ‘Smart Meter’ to Detect Power Thefts
The board received around 1,699 crypto-related complaints between January 2020 and December 2024, with an average of 340 per month.
“The number of complaints reflects increasing public awareness of reporting on illicit crypto mining activities,” TNB said.
Further, the electricity provider has deployed ‘smart meters,’ which could improve detection of electricity theft and enable efficient monitoring.
The strategy came after the board conducted a continuous consumption patterns analysis to spot suspicious energy usage.
“We work closely with the relevant authorities and stakeholders to uphold fair and sustainable electricity usage, therefore ensuring reliability for all customers.”
The smart meter device records the daily electricity usage and communicates the numbers to the TNB through radio-frequency waves.
Additionally, the board has proposed employing AI and predictive analytics to further improve the process, the report read.
When it comes to legal enforcement, the TNB has proposed stricter actions under the Electricity Supply Act. Anyone who tampers with or alters any electricity installation is liable to a fine of up to 1 million Ringgit ($232K), imprisonment for up to 10 years, or both.
Over Half a Billion Ringgit Lost to Energy Thefts: CID Director
Datuk Seri Mohd Shuhaily Mohd Zain, director of Bukit Aman Criminal Investigation Department (CID), noted that TNB lost about 520 million Ringgit ($121 million) to electricity thefts.
“Most of the cases involved illegal crypto mining operations,” he told The Star.
Besides, he noted that crypto mining syndicates often operate from rented shops, warehouses or residential homes with low foot traffic.
“Many syndicates WOULD then install heavy-duty ventilation systems, air conditioners and soundproofing materials to avoid drawing attention from the neighbours or enforcement authorities.”
Further, these criminals illegally bypass the electricity meter by tapping directly into the main power grid for surplus electricity consumption.
“This allows them to consume massive amounts of electricity – often equivalent to what an entire residential block would use,” the officer said, adding that these syndicates don’t stick to a single place to avoid attention.
“They would shift their operations every few months to new premises,” he noted.
In February, Malaysian police uncovered an illegal Bitcoin mining setup, following an explosion at the house that hosted the operation. The investigations found that the electricity had been connected illegally for bitcoin mining, causing a short circuit.
