Malaysia Bleeds $1 Billion in Crypto Mining Crisis - Here’s What’s Next
Massive crypto mining crackdown reveals staggering financial hemorrhage as authorities scramble for solutions.
The Energy Drain
Malaysia's power grid has been systematically exploited by underground mining operations siphoning enough electricity to power entire cities. These unauthorized facilities bypassed regulatory oversight while consuming resources meant for legitimate businesses and households.
Regulatory Reckoning
Authorities are now implementing aggressive countermeasures, deploying specialized task forces to dismantle illegal mining infrastructure. The crackdown targets sophisticated operations hidden in industrial zones and remote locations where power consumption patterns raised red flags.
Market Implications
While legitimate crypto operations continue unaffected, the billion-dollar loss highlights the growing pains of digital asset adoption. Traditional finance regulators are watching closely—probably while calculating how many yacht parties that stolen electricity could have funded.
The cleanup continues as Malaysia charts a path toward regulated mining that actually pays its electric bill.
Malaysia has lost over $1 billion to illegal crypto mining
Electricity theft in Malaysia is on the rise due to a surge in illegal crypto mining in the country.
In total, 13,827 premises were identified to be related to illegal power consumption related to crypto mining. Several of the mining equipment being used on these premises, such as Bitcoin rigs, have been seized through law enforcement operations. Authorities are working to prevent further financial damage.
As of this report, Malaysia doesn’t have a law against crypto mining, so authorities are pursuing criminal charges under the Electricity Supply Act for meter tampering or bypassing meters, which are officially illegal.
The TNB has led joint raids and investigations with the police, the Malaysian Communications and Multimedia Commission, and the anti-graft agency (MACC).
The ministry explained that they have set up a database with the names of property owners and tenants of premises suspected of illegal mining. This lets TNB flag suspicious sites and plan its inspections more efficiently.
TNB is also installing smart meters at distribution substations that can detect abnormal power usage and any potential tampering with electrical power in real time.
Illegal mining has become a headache
TNB reports that electricity theft linked to crypto mining has jumped by nearly 300% from 2018 to 2024. The number of detected cases ROSE from 610 in 2018 to 2,397 in 2024.
In July 2025, Malaysia’s Deputy Minister for Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, said that since 2018, about RM 4.8 billion has been lost to illegal bitcoin mining through electricity theft. He also emphasized that the growing value of Bitcoin is making more people willing to take the risk.
In some cases, property owners are being held responsible for the electricity bills racked up by their tenants. Forty-five landlords reportedly owe a combined RM 8.5 million after their tenants used their properties for illegal mining. These individuals will often use false identities to open TNB accounts.
TNB has said it will assist these landlords and is encouraging property owners to submit “Change of Tenancy” applications to avoid similar issues in the future.
In August this year, during a small police raid, TNB seized 61 Bitcoin miners in the Manjung district during coordinated raids. In Terengganu, another operation led to the seizure of 45 machines, and authorities estimate that the monthly electricity losses add up to RM 36,000.
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