Bitcoin News Update: Malaysia Tackles $1.1 Billion Crypto Theft Using Technology and Legal Measures Amid Concerns Over Energy Consumption

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Bitget-RWA2025/11/22 12:28

By:Bitget-RWA

- Malaysia's TNB reports $1.1B losses from 2020-2025 due to 13,827 crypto mining sites bypassing electricity meters, primarily for Bitcoin . - Authorities deploy smart meters, AI analytics, and joint operations to combat theft, while landlords face liability for tenants' illicit mining costs. - Regulatory gaps persist as crypto mining remains legal but meter tampering is prohibited, with 300% case growth since 2018 and 45 landlords owing $2.1M. - Experts warn Malaysia's low energy rates and 4,000+ potentia

Malaysia’s state-owned power company, Tenaga Nasional Bhd (TNB), has reported losses of over $1.1 billion due to unauthorized electricity consumption by cryptocurrency miners from 2020 through August 2025, as detailed in a response from the energy ministry to parliament. Authorities have discovered 13,827 locations nationwide where operators either bypassed meters or altered electrical connections to run crypto mining activities,

mainly for Bitcoin

. This widespread theft has put significant pressure on the national power grid and heightened safety risks, leading to a coordinated crackdown involving police, anti-corruption officials, and the national energy regulator

as reported

The total financial impact has reached 4.6 billion ringgit ($1.11 billion),

with the energy ministry cautioning

that such illegal activities pose threats to both economic stability and the reliability of the grid. TNB has confiscated thousands of mining devices in joint raids and created a database to monitor property owners and tenants suspected of being involved in electricity theft.

This database, referred to as an "internal reference"

, supports targeted inspections. Additionally, smart meters are being installed at substations to monitor real-time energy usage anomalies, and

artificial intelligence analytics are under consideration

to detect unusual consumption patterns.

Bitcoin News Update: Malaysia Tackles $1.1 Billion Crypto Theft Using Technology and Legal Measures Amid Concerns Over Energy Consumption image 0

The rapid increase in electricity theft has outstripped current regulations. While mining cryptocurrencies is not illegal in itself, the Electricity Supply Act forbids tampering with meters and making unauthorized connections—offenses that can result in fines or imprisonment

according to industry insiders

. Officials have observed

a 300% rise in reported incidents since 2018

, with an average of 2,303 cases each year between 2020 and 2024. Property owners are also being held responsible for electricity debts incurred by tenants who use their premises for illegal mining,

with 45 landlords reportedly owing

$2.1 million in unpaid electricity fees.

Industry analysts point to regulatory shortcomings that have worsened the situation. Malaysia’s low electricity costs and its increasing share of the global

Bitcoin

hash rate could draw $400-700 million in investments if the sector were formalized, but

the lack of licensing systems and specific tariffs

has made enforcement difficult. The ACCESS Blockchain Association projects that legalizing the industry could create 4,000 jobs and bring in $150 million in taxes annually, but current regulations leave operators in a legal "grey area".

TNB’s strategies to address the problem go beyond technological solutions. Public education campaigns are underway to encourage people to report suspicious activities, and landlords are being advised to file "Change of Tenancy" forms to avoid being held liable for tenants’ illegal mining. Despite these initiatives, the ministry admits that mobile mining groups, which frequently move to avoid detection, remain a significant challenge.

The magnitude of the issue highlights the ongoing conflict between Malaysia’s energy infrastructure and the high power demands of crypto mining. As Bitcoin’s price incentivizes riskier behavior, authorities are under increasing pressure to find a balance between fostering innovation and ensuring grid security. The energy ministry’s push for tighter regulations could influence how other countries manage the intersection of digital assets and energy policy.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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