Electricity Theft from Bitcoin Mining Causes over $100 Million Losses in Malaysia

The Impact of Illegal Bitcoin Mining on Malaysia’s Energy Provider

Malaysia’s national electricity provider, Tenaga Nasional Berhad (TNB), has reported staggering losses exceeding 440 million ringgit (around $101 million) due to electricity theft associated with illegal Bitcoin mining activities. This has severely affected TNB’s financial stability, with losses reaching 103 million ringgit in 2023 alone, according to the director of Malaysia’s Criminal Investigation Department, Suhai Rizain.

The Escalating Losses Over the Years

Since 2020, the losses incurred from crypto mining have been on the rise. In 2020, TNB reported losses of 5.9 million ringgit, which skyrocketed to 140.4 million ringgit in 2021, followed by 124.9 million ringgit in 2022, and 67.1 million ringgit in the past year.

Challenges Posed by Bitcoin Mining in Malaysia

Earlier in July, TNB disclosed losses amounting to over $755 million due to illicit Bitcoin mining activities from 2018 to 2023. Deputy Minister Akmal Nasir highlighted that while crypto mining constitutes a small portion of total energy consumption, its financial repercussions on the nation are significant.

Crackdown on Illegal Mining Operations

Authorities seized electrical items worth nearly $500,000 related to illegal mining operations and initiated actions against tax evasion involving digital assets. The Criminal Investigation Department is set to probe into the factors contributing to these substantial losses, focusing on trends observed in 2022 and 2023.

The Consequences of Illegal Bitcoin Mining

Illegal Bitcoin mining involves unauthorized usage of electricity to power computers for solving complex mathematical problems, enabling users to earn Bitcoin. This practice leads to excessive electricity consumption, resulting in theft when miners evade payment for the energy utilized.