Malaysia’s national electricity provider, Tenaga Nasional Berhad (TNB), has reported staggering losses exceeding 440 million ringgit (about $101 million) due to electricity theft linked to illegal Bitcoin mining activities. This issue has significantly impacted TNB’s finances since 2020, with a loss of 103 million ringgit in 2023 alone, as reported by Suhai Rizain, the director of Malaysia’s Criminal Investigation Department.
The losses from crypto mining have been on the rise in recent years. In 2020, TNB recorded losses of 5.9 million ringgit, which escalated to 140.4 million ringgit in 2021, followed by 124.9 million ringgit in 2022, and 67.1 million ringgit in the previous year.
Earlier this year in July, TNB reported even more significant figures, 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 substantial financial impact on the country.
In response to these challenges, 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 is planning to investigate the factors contributing to these substantial losses, particularly focusing on the trends observed in 2022 and 2023.
Illegal Bitcoin mining involves using unauthorized electricity to power computers that solve complex mathematical problems, enabling users to earn Bitcoin. This practice leads to significant electricity consumption, resulting in theft when miners do not pay for the power they use.
The impact of illegal Bitcoin mining on Malaysia’s national electricity provider highlights the need for stricter regulations and enforcement measures to combat this growing issue. As the demand for cryptocurrencies continues to rise, it is crucial for authorities to address the challenges posed by illicit mining activities to ensure the sustainability of the energy sector and prevent further financial losses.