Malaysian electricity theft for mining rampant, losing $1.1 billion over 5 years

Malaysian illegal electricity theft and mining issues are becoming increasingly severe. According to the latest disclosure from the state-owned electricity company Tenaga Nasional Berhad (TNB), between 2020 and August 2025, Malaysia suffered direct losses of up to 4.57 billion Ringgit due to electricity theft for mining purposes, equivalent to approximately $1.1 billion USD. The government has launched multi-faceted crackdowns in an attempt to curb this black industry wave.

The scale of electricity theft is shocking: over 13,000 illegal mines exposed

The Ministry of Energy, Technology, Science, Climate Change and Environment (PETRA) disclosed in official documents that over the past five years, TNB has uncovered a total of 13,827 illegal electricity theft sites. These operators use methods such as modified meters and private wiring to large-scale steal electricity for Bitcoin and cryptocurrency mining. The Ministry pointed out that such behaviors not only plunder national resources but also pose serious threats to the stability of the power supply system, public safety, and economic development.

In fact, Malaysian authorities have been cracking down on illegal mines since 2018, aiming to control soaring electricity costs. Law enforcement efforts have intensified in recent years—by August 2024, authorities had mobilized “steamrollers” to destroy 985 Bitcoin mining rigs, involving equipment valued at 1.97 million Ringgit (about $450,000 USD).

Technological upgrades and dual approaches: smart monitoring targets suspicious sites

To precisely combat electricity theft, TNB has established an internal database to collect information on properties and tenants suspected of involvement in theft, serving as an important basis for identifying and monitoring suspicious sites and executing surprise inspections.

On the technical front, TNB has deployed numerous smart meters and is trialing a “distribution transformer meter” monitoring program at substations. This system uses high-resolution electricity consumption data to trace abnormal traffic, aiming to intercept violations before they escalate. This anti-theft system gradually narrows the activity range of thieves.

Clear legal boundaries: maximum fines of millions and ten years imprisonment

Although operating Bitcoin mining businesses in Malaysia is not illegal per se, electricity theft is strictly regulated by law. Under the Electricity Supply Act of Malaysia, unauthorized tampering with power lines that causes or could cause loss of life or property is a criminal offense. Convictions can result in a fine of up to 1 million Ringgit (about $220,000 USD) or imprisonment for up to 5 years; more serious cases may face a fine of 5 million Ringgit (about $1.14 million USD) or up to 10 years in prison, or both.

As Malaysia intensifies law enforcement and legal deterrence, the costs and risks associated with illegal mining and electricity theft are rising sharply, gradually squeezing the survival space for illegal mines.