Bitcoin News Update: Malaysia Faces $1 Billion Electricity Theft Scandal as Secret Crypto Mining Operations Jeopardize Power Grid Stability

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Bitget-RWA2025/11/25 05:00

By:Bitget-RWA

- Malaysia's TNB confirmed $1.1B electricity losses from 13,827 illegal crypto mining sites (2020-2025), threatening grid stability and economic security. - 300% surge in power theft cases (2018-2024) involves bypassing meters, hidden warehouses, and industrial cooling to evade detection. - TNB deployed smart meters, real-time monitoring, and targeted raids, seizing 900 Bitcoin machines worth $482K in 2024. - Government considers licensing frameworks and energy pricing reforms to formalize crypto mining am

Malaysia’s state-owned power provider, Tenaga Nasional Berhad (TNB), has reported that illegal cryptocurrency mining has led to electricity revenue losses surpassing $1.1 billion from 2020 through August 2025. The Ministry of Energy

revealed in a response to parliament

that authorities have discovered 13,827 locations illicitly diverting electricity for the purpose of mining

Bitcoin

and other digital currencies. This widespread theft has raised serious concerns about the stability of the national grid and the country’s economic security. With losses totaling 4.57 billion ringgit ($1.1 billion), the situation has

triggered coordinated enforcement actions

and the adoption of advanced technologies to address the escalating issue of electricity fraud.

These unauthorized mining activities typically involve tampering with meters or making illegal connections to the power grid, practices

deemed criminal acts

under Malaysia’s Electricity Supply Act. Officials note that such operations are often concealed in places with little public activity, such as warehouses, residential properties, or retail spaces. Operators frequently install industrial-grade cooling and soundproofing equipment to evade detection,

as reported

Bitcoin News Update: Malaysia Faces $1 Billion Electricity Theft Scandal as Secret Crypto Mining Operations Jeopardize Power Grid Stability image 0

The issue has escalated sharply:

incidents of electricity theft tied to crypto mining have jumped by 300%

from 2018 to 2024, with an average of 2,303 cases each year between 2020 and 2024.

In response, TNB has

introduced smart meters

and started a pilot initiative called the “Distribution Transformer Meter” to track real-time power consumption and spot irregularities. The company has also established a database to monitor property owners and renters suspected of being involved in electricity theft,

providing a resource

for focused inspections. Joint operations involving TNB, law enforcement, and anti-corruption bodies have

led to the confiscation

of thousands of mining devices, including a 2024 raid that destroyed 900 Bitcoin mining units valued at $482,160.

The financial and infrastructure dangers posed by unchecked theft have spurred policy action. The Ministry of Energy

stressed that these losses put pressure on

TNB’s yearly income and may result in higher electricity prices for law-abiding consumers. Although cryptocurrency mining is not currently regulated in Malaysia, the government has

suggested possible changes

such as introducing licensing systems and sustainable electricity pricing to legitimize the sector and reduce illegal activities.

On a global scale, Malaysia’s situation is similar to that of other nations with subsidized power, like Iran, Russia, and Paraguay,

where weak regulation allows illegal mining to flourish

Experts warn that without tighter controls

, and clearer rules, the lucrative nature of Bitcoin mining will likely continue to drive electricity theft, especially in areas such as Southeast Asia where energy remains inexpensive.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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