In a shocking revelation for the energy industry, it has been confirmed by Malaysia that it suffered losses of more than US$ 1.1 billion (RM 4.57 billion) because of extensive electricity theft from illegal cryptocurrency operators and miners. The scale of the operation that has been draining the national grid for the last five years was revealed in a parliamentary announcement this week and points towards a criminal underground economy that is putting the security of the country’s power grid at serious risk.
On Tuesday, the Ministry of Energy and Water Transformation revealed that Tenaga Nasional Berhad (TNB), the national electricity utility, had been involved in a battle with elusive syndicates that have bypassed meters and tapped into high voltage lines, stealing electricity between January 2020 and late 2022. Quiet shop lots and warehouses have transformed into industrial-scale Bitcoin mining farms on the back of public utility.
The Scale of the Power Theft: 13,827 Premises Involved
On November 18, 2025, the ministry disclosed to Parliament in writing that Tenaga Nasional Berhad (TNB) had detected an astonishing 13,827 premises illegally stealing electricity since 2020 until August 2025. Some of the premises included regular houses and some outlying sustainable industrial warehouses including a common objective: to run energy-consuming mining rigs without paying for the electricity.
The total theft amounted to a whopping 4.6 billion ringgit ($1.11 billion), a big hit to national revenues. To put this in perspective, the energy stolen is enough to power hundreds of thousands of homes in Malaysia for a single year. The authorities state that this amounts to more than just average theft; it is organized crime that operates on an industrial scale, often on behalf of syndicates that have the financial ability to relocate and pivot without detection.
How TNB Is Using Smart Meters to Stop Theft
In response to the escalating threat, TNB has initiated its counter-offensive, powered by data and sophisticated technology. The utility giant has begun establishing a detailed internal database that includes full records of owners and tenants of properties believed to be engaged in electricity theft. This “blacklist” is an important point of reference for identifying suspicious activity and directing operational inspections.
In addition to tracking, TNB is also modernizing the grid itself. The company has aggressively deployed ‘smart meters’ at electricity distribution substations. Smart meters enable real-time monitoring of the flow of power and can detect the exact ‘load profile’ associated with crypto mining—high consumption that is constant—immediately alerting staff. Additionally, the company is also deploying a pilot project called the Distribution Transformer Meter (DTM), which will identify abnormal consumption at the substation level even before the staff is dispatched.
Police Raids Expand Nationwide
There has been a shift in police actions, from staking out criminals online to enforcing on the ground. Since January, Malaysian police have stepped up their raids on crypto undergrounds in multiple states. Most recently, police arrested eight men in a triggered operation in the northern part of Malaysia, seizing a fleet of four-wheel drives and high-end mining rigs.
These joint enforcement operations—involving the energy ministry, the Royal Malaysia Police, the national communications regulator, and the anti-graft agency—are becoming a weekly occurrence. The strategy is to hit the syndicates where it hurts: seizing the expensive hardware that makes the illegal operation profitable in the first place.
A Legal Gray Zone Under Review
One of the complexities facing regulators is the legal status of the industry itself. While mining cryptocurrency may not be explicitly illegal in Malaysia, stealing electricity will be viewed as a serious offence under the Electricity Supply Act 1990. Operators are required to undergo proper registration, environmental assessments, and energy efficiency checks—procedures that illegal miners bypass entirely to maximize profits.
However, the government’s patience is wearing thin. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir told Parliament that a new multi-agency committee is being formed to study long-term measures. This includes reviewing the current laws and even considering a total ban on Bitcoin mining activities if the theft cannot be brought under control.
A Threat to National Stability
Officials warn that the threats we face as a result of these conditions are not only financial in nature, but bring potential significant dangers to public safety as illegal crypto-mining farms are commonplace. The electrical “taps” into the grid are usually poorly done with unsafe wiring that bypasses safety fuses and causes numerous fires in shop lots and homes.
Moreover, illegal farm usage is straining the limits of the electrical grid and threatening to cut off our supply of resources with blackouts impacting our communities. After losses of over one billion dollars, Malaysia is preparing for a reckoning to put a stop to dangers affecting its infrastructure in a digital gold rush.
