Malaysia saw a threefold increase in electricity theft from 2018 to the end of 2024, driven largely by rogue cryptocurrency miners tapping into the grid without paying, authorities reported.
Tenaga Nasional Berhad (TNB), the Energy Commission and the police joined forces in raids and checks to uncover 2,397 cases last year, up from just 610 in 2018, according to reports.
How Crypto Mining Works?
Crypto mining involves solving complex puzzles to add new blocks to a blockchain. Networks like Bitcoin rely on a proof-of-work model that needs vast amounts of electricity.
Each mining machine can draw between 1,000 and 8,000 watts. In Malaysia, where power costs about 52 cents per kilowatt hour, the lure of free energy proved too strong for some operators.
Detection and Enforcement
After 2020, yearly detections of stolen power linked to crypto surged to an average of 2,303 cases. TNB said that better public awareness on how to report theft helped increase tip-offs.
To clamp down, the utility has begun fitting smart meters that send radio updates and sound alarms on sudden spikes in usage.
Also Read: Russia’s Rosseti Reports $14M Losses In 2024 Due To Illegal Crypto Mining
Tougher Penalties
Under Malaysia’s Electricity Supply Act, anyone caught tampering with the grid can face steep penalties. Fines may reach two hundred and twelve thousand dollars or up to ten years behind bars. TNB hopes that these stricter measures will deter would-be electricity thieves and protect the wider system.
Illegal mining sites can strain local transformers and cables. TNB noted that shutting down off-grid operations helped stabilise supply in hard-hit regions.
Officials say the combined effort of smart technology and tougher rules has begun to ease pressure on the network.
Lessons from Abroad
Malaysia’s crackdown mirrors moves in other power-rich nations. In Kuwait, authorities recently raided over a thousand illicit crypto farms that were blamed for rolling blackouts. Such parallels show how markets with low energy prices attract bad actors keen on skirting electricity bills.
The spike in theft highlights the challenges of policing a rapid rise in crypto activity. While many miners act within the law, a growing number see theft as a quick path to profit.
Governments must balance the appeal of blockchain innovation with the need to safeguard critical infrastructure.
Malaysia’s battle against illegal crypto mining offers a window into a global struggle. By blending advanced metering technology, public reporting and stiff punishments, the country aims to keep its grid secure.
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