A significant increase of 300% in electricity theft cases has been observed in Malaysia from 2018 to 2024, primarily driven by the proliferation of illicit cryptocurrency mining activities, as reported by The Star on Monday. These cases were identified through collaborative efforts involving Tenaga Nasional Berhad, the country's primary electricity utility, the Energy Commission, and law enforcement agencies. According to a statement released by the utility to The Star, "The success of joint operations and nationwide raids in dismantling illegal mining setups has led to a notable rise in detected cases, from 610 in 2018 to 2,397 in 2024." Cryptocurrency mining, which entails verifying transactions, discovering new blocks, and adding them to the blockchain, is a highly energy-intensive process, particularly for proof-of-work blockchains like Bitcoin.
This has created an incentive for dishonest miners to steal electricity instead of paying for it, as they reap rewards in the form of new tokens for completing the mining process. The most substantial increase in cases occurred after 2020, with an average of 2,303 crypto-related electricity theft cases per year between 2020 and 2024, as stated by TNB. Additionally, the number of public complaints has risen due to increased awareness about reporting illicit crypto mining activities, TNB noted.
While cryptocurrency mining is not prohibited in Malaysia, individuals who tamper with electrical installations face a fine of up to 1 million ringgit ($232,720.50) and imprisonment of up to 10 years. CoinDesk has reached out to Tenaga Nasional Berhad for further comment.