Malaysia Loses Over $1 Billion to Illegal Crypto Mining – A Growing Crisis in 2025

• How Big Is Malaysia’s Illegal Crypto Mining Problem?
• What’s Driving the Surge in Electricity Theft?
• How Is Malaysia Fighting Back?
• Why Is Crypto Mining So Hard to Stop?
• What’s Next for Malaysia’s Crackdown?
• FAQs: Malaysia’s Crypto Mining Crackdown

Malaysia is grappling with a surge in illegal cryptocurrency mining, costing its national energy provider, Tenaga Nasional Bhd (TNB), over $1 billion (4.6 billion RM) in losses since 2020. Authorities are cracking down through "Operation Letrik," seizing thousands of mining rigs and implementing smart meters to detect theft. With Bitcoin's rising value fueling the trend, the government faces an uphill battle to curb electricity theft and protect landlords from hefty fines. Here’s a deep dive into the crisis and what’s being done to stop it.

How Big Is Malaysia’s Illegal Crypto Mining Problem?

Malaysia’s illegal crypto mining crisis has spiraled out of control, with losses exceeding $1 billion between 2020 and August 2025. According to TNB, electricity theft linked to crypto mining has surged by nearly 300% since 2018, with 2,397 cases uncovered in 2024 alone. The SEAL unit (Special Engagement Against Losses), alongside police and anti-corruption agencies, has seized 13,827 mining devices, including high-performance bitcoin rigs. The problem is so rampant that TNB has created a database of suspected property owners and tenants involved in illegal mining.

What’s Driving the Surge in Electricity Theft?

Bitcoin’s skyrocketing value is the primary culprit. As Akmal Nasrullah Mohd Nasir, Malaysia’s Deputy Minister for Energy Transition and Water, noted in July 2025, the allure of quick profits has tempted many to bypass legal power usage. Mining operations often tamper with meters or use fake identities to open TNB accounts. In some cases, landlords are left footing the bill—45 property owners owe a collective 8.5 million RM after their tenants exploited their spaces for mining. TNB is now urging landlords to file lease amendments to avoid liability.

How Is Malaysia Fighting Back?

Authorities are doubling down with "Operation Letrik," a multi-agency effort involving TNB, police, and the Malaysian Communications and Multimedia Commission. Recent raids in Manjung and Terengganu confiscated 106 mining rigs, preventing monthly losses of 36,000 RM. TNB is also rolling out smart meters to detect abnormal consumption in real time. However, the lack of specific laws against crypto mining complicates enforcement—currently, offenders are charged under the Electricity Supply Act for meter tampering.

Why Is Crypto Mining So Hard to Stop?

Unlike traditional crimes, crypto mining is decentralized and often hidden in residential or industrial properties. Mining rigs are portable, making raids a game of whack-a-mole. Plus, with Bitcoin’s price volatility, miners are willing to risk fines for potential windfalls. As one anonymous trader on BTCC put it, "When BTC hits $100K, even a 50% penalty feels like a bargain."

What’s Next for Malaysia’s Crackdown?

TNB plans to expand its smart meter network and collaborate with blockchain analytics firms to trace illegal operations. The government may also introduce stricter penalties for landlords who turn a blind eye. For now, the battle continues—one rig at a time.

FAQs: Malaysia’s Crypto Mining Crackdown

How much has Malaysia lost to illegal crypto mining?

Over $1 billion (4.6 billion RM) since 2020, per TNB’s estimates.

What’s "Operation Letrik"?

A joint task force targeting electricity theft, involving TNB, police, and anti-corruption agencies.

Are landlords held responsible for tenants’ mining activities?

Yes—45 landlords currently owe 8.5 million RM in unpaid bills.