Illegal Bitcoin Mining Costs Malaysian Electricity Company Over $100m

Malaysia’s national electricity provider, Tenaga Nasional Berhad, has reported losses exceeding 440 million ringgit (about $101 million) due to electricity theft linked to illegal Bitcoin mining activities. 

Local reporting from The Star indicates that since 2020, this theft has significantly impacted TNB’s finances, resulting in a loss of 103 million ringgit in 2023 alone, according to Suhai Rizain, the director of Malaysia’s Criminal Investigation Department.

The losses from crypto mining have increased sharply over the years. In 2020, TNB recorded losses of 5.9 million ringgit. This figure escalated to 140.4 million ringgit in 2021, followed by 124.9 million ringgit in 2022, and 67.1 million ringgit last year. 

Earlier this year in July, the TNB reported similar figuresn noting losses exceeding $755 million due to illicit Bitcoin mining activities from 2018 to 2023.

The deputy minister of energy transition and water transformation, Akmal Nasir, acknowledged that while crypto mining accounted for a small portion of total energy consumption, it had a significant financial impact on the country.

Additionally, authorities seized nearly $500,000 worth of electrical items linked to illegal mining operations and launched a crackdown on tax evasion involving digital assets.

The Criminal Investigation Department plans to investigate the factors contributing to these substantial losses, particularly the trends observed in 2022 and 2023.

Illegal Bitcoin (BTC) mining involves using unauthorized electricity to power computers that solve complex mathematical problems, enabling users to earn Bitcoin. This practice can lead to significant electricity consumption, which results in theft when miners do not pay for the power they use.