Malaysia Loses $1.1B to Illegal Crypto Mining

Malaysia’s main electricity company, Tenaga Nasional Berhad (TNB), has reported huge losses of over $1.1 billion to crypto mining. These losses happened because people were illegally using electricity to mine cryptocurrencies over the last five years. 

The news comes as Malaysia continues to fight power theft and keep its electricity supply stable.

TNB Finds $1.1 Billion Lost to Illegal Crypto Mining in Malaysia

A recent report from Malaysia’s Energy Ministry showed that TNB found 13,827 places illegally using electricity to mine Bitcoin and other cryptocurrencies. These cases happened between 2020 and August 2025, causing losses of at least 4.57 billion ringgit, or $1.1 billion.

The ministry said that stealing electricity not only puts Malaysia’s power supply at risk but also threatens public safety and the country’s economy. 

Malaysia has been tackling illegal crypto mining since 2018. In 2024, Deputy Minister Akmal Nasrullah Mohd Nasir said that between 2018 and 2023, such mining stole $723 million worth of electricity.

He added that these activities put a big strain on the country’s energy supply. This shows the need for stronger rules and closer checks to stop such crimes. However, authorities are seeking to prevent rising electricity costs and potential strain on the national grid. 

Last year, officials seized and destroyed over 900 unauthorized Bitcoin mining rigs. The total value of the confiscated equipment was nearly 2 million ringgit, or about $482,160.

Malaysia Fights Illegal Crypto Mining

The Energy Ministry highlighted that TNB has now created an internal database of property owners and tenants suspected of involvement in electricity theft. 

This database aims to improve tracking, identification, and monitoring of suspicious premises, helping TNB carry out inspections. On the technical side, TNB has installed advanced smart meters and started a pilot program called the Distribution Transformer Meter at energy substations. 

These tools let the company track electricity use more closely and spot unusual patterns. This helps stop future losses from illegal crypto mining.

Bitcoin Mining Causes Power Shortages Worldwide

As Bitcoin mining continues to grow in popularity, the demand for electricity keeps increasing. A few days ago, Kyrgyzstan temporarily disconnected its crypto mining farms due to energy shortages. The move comes as low water in hydroelectric dams and rising electricity costs are straining the country’s power supply. 

In May 2024, Venezuela banned crypto mining to protect its power supply. The country was struggling to keep up with the high energy use from illegal mining.

Illegal mining operations are adding even more pressure on power grids, which can lead to power outages and other problems. This problem is not just in Malaysia. 

Many countries around the world are dealing with illegal crypto mining. In Iran, the government found 230,000 unauthorized mining machines using as much electricity as a small province.