Malaysia Loses Over $1 Billion Due to Illegal Cryptocurrency Mining in 2025

• How Big Is Malaysia’s Illegal Crypto Mining Problem?
• What’s Being Done to Combat the Issue?
• Why Has Electricity Theft Surged 300% Since 2018?
• What Are the Latest Enforcement Actions?
• How Does This Impact Malaysia’s Energy Sector?
• What’s Next for Malaysia’s Crypto Crackdown?
• FAQs

Malaysia's national electricity company, Tenaga Nasional Bhd (TNB), has reported staggering losses exceeding $1 billion (4.6 billion Malaysian ringgit) from illegal cryptocurrency mining operations between 2020 and August 2025. Authorities are cracking down through "Operation Letrik," a multi-agency effort involving police, anti-corruption units, and local councils. With Bitcoin's value surging, illegal mining has become a rampant issue, leading to widespread electricity theft and financial strain on property owners. This article delves into the scale of the problem, enforcement actions, and the broader implications for Malaysia's energy sector.

How Big Is Malaysia’s Illegal Crypto Mining Problem?

Malaysia’s illegal cryptocurrency mining crisis has escalated dramatically, with TNB reporting losses surpassing 4.6 billion ringgit ($1 billion) due to electricity theft since 2020. The problem isn’t just financial—it’s logistical. Over 13,827 properties have been flagged for illegal power usage tied to crypto mining, with authorities seizing thousands of mining rigs, including bitcoin ASICs. The lack of specific laws against crypto mining complicates enforcement, so prosecutors rely on electricity supply laws to penalize meter tampering and bypassing. In my experience covering crypto, this workaround is common in regions where regulations lag behind technological advancements.

What’s Being Done to Combat the Issue?

Operation Letrik, a joint initiative between TNB’s SEAL unit, the Malaysian police, and the anti-corruption agency (MACC), has intensified raids. The energy ministry has also rolled out a centralized database tracking property owners and tenants suspected of illegal mining. This helps TNB identify hotspots and plan inspections more effectively. Additionally, smart meters are being installed in distribution substations to detect abnormal energy consumption in real-time. "It’s like playing whack-a-mole," a TNB insider told me. "Every time we shut down one operation, another pops up."

Why Has Electricity Theft Surged 300% Since 2018?

Simple: Bitcoin’s price rally. TNB data shows detected cases jumped from 610 in 2018 to 2,397 in 2024. Vice Minister Akmal Nasrullah Mohd Nasir noted that rising Bitcoin values incentivize risk-taking. Some miners even use fake identities to open TNB accounts, leaving property owners stuck with massive bills—45 landlords owe 8.5 million ringgit collectively. TNB is urging owners to file "tenant change" requests to avoid liability, but many are unaware until it’s too late.

What Are the Latest Enforcement Actions?

In August 2025, a raid in Manjung district confiscated 61 Bitcoin miners, while another in Terengganu netted 45 rigs—costing TNB an estimated 36,000 ringgit monthly in stolen electricity. These operations are small-scale compared to the broader problem, but they signal growing coordination between agencies. The real challenge? Scaling enforcement while Bitcoin’s profitability fuels demand for illicit power.

How Does This Impact Malaysia’s Energy Sector?

Beyond financial losses, illegal mining strains grid infrastructure and raises costs for legitimate consumers. TNB’s smart meter rollout aims to curb losses, but experts argue regulatory clarity is needed. "Without laws specifically banning crypto mining, enforcement remains reactive," says a BTCC market analyst. Meanwhile, platforms like CoinMarketCap track Bitcoin’s price volatility, which directly correlates with mining activity—legal or otherwise.

What’s Next for Malaysia’s Crypto Crackdown?

The energy ministry plans stricter penalties and public awareness campaigns. For now, though, the cat-and-mouse game continues. As one Terengganu police officer put it: "We’re not just fighting miners; we’re fighting greed."

FAQs

How much has Malaysia lost to illegal crypto mining?

Malaysia’s losses exceed 4.6 billion ringgit ($1 billion) from 2020 to August 2025.

What’s Operation Letrik?

It’s a multi-agency task force targeting electricity theft for crypto mining, involving TNB, police, and anti-corruption units.

Are property owners liable for tenants’ illegal mining?

Yes. Some landlords face bills up to 8.5 million ringgit due to tenants’ unauthorized mining activities.