Malaysia’s Largest Energy Firm Reports 300% Rise in Crypto-Linked Power Theft

In brief Electricity theft cases jumped from 300% in 2018 to 2024 as crypto mining in the country grows. Joint operations with authorities have shut down numerous illegal mining operations nationwide. Some property owners report bills of up to $278,400 as tenants set up unauthorized mining rigs. Malaysia’s largest national electric utility company, Tenaga Nasional Berhad (TNB), is helping authorities crack down on electricity theft tied to illegal crypto mining operations in the country, which it claims has jumped nearly 300% over the last six years. The surge in complaints “reflects increasing public awareness of reporting on illicit crypto mining activities,” according to a statement provided by TNB to local media on Monday. Of the 610 cases it first discovered in 2018, the number has risen to 2,397 cases by 2024, TNB said. The increase is attributed to unauthorized miners siphoning subsidized electricity through tampered or bypassed meters, costing the company hundreds of millions and destabilizing the grid, it claimed. Meanwhile, Malaysian authorities have launched nationwide raids, partnering with regulators, anti-corruption officers, and local councils to dismantle underground mining setups. Those enforcement actions have “safeguarded the stability of the power grid,” the electricity provider said. TBN did not immediately respond to a request for comment. Cheap electricity, growing demand To combat illegal crypto mining, TNB said it has expanded its “smart meter” network that tracks electricity usage via radio signals, enabling real-time detection of unusual consumption patterns. TNB has also called for stricter enforcement of Malaysia’s Electricity Supply Act , which imposes penalties of up to $212,000 (RM1 million) in fines or 10 years in prison for tampering with the grid. Some property owners in Malaysia only discovered their homes had been turned into covert mining farms when they were hit with bills as high as $278,400 (RM1.2 million), the TNB said, citing reports from local media. Crypto mining rigs typically require between 1,000 watts (1 kW) and 8 kW of power, according to a 2024 study from the U.S. Energy Information Administration. Malaysia’s electricity production stood at 15,451 Gigawatt-hours, with prices as low as $0.052 cents, December 2024 numbers from CEIC Data show. The country’s enforcement actions against illegal crypto mining mirror what’s happening elsewhere. Last week, Kuwaiti authorities launched an enforcement blitz , questioning 116 individuals, following the discovery of over 1,000 illegal crypto mining sites last month. Kuwaiti authorities claim those activities have strained the national power grid and caused widespread blackouts. Edited by Sebastian Sinclair Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Source: https://decrypt.co/318965/malaysias-largest-energy-firm-300-rise-crypto-linked-power-theft