Illegal Bitcoin mining costs Malaysian electricity company over $100m

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

Local reporting by The Star shows that this theft has significantly affected TNB’s finances since 2020, leading to a loss of 103 million ringgit in 2023 alone, according to Malaysian Criminal Investigation Department director Suhai Rizain.

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

Bitcoin mining in Malaysia

Earlier this year in July, TNB reported similar figures stating that losses in excess of $755 million had been recorded due to illegal Bitcoin mining activities from 2018 to 2023.

Deputy Minister of Energy Transition and Water Conversion, Akmal Nasir, acknowledged that although crypto mining accounts for a small portion of total energy consumption, it has a significant financial impact on the country.

Additionally, authorities seized approximately $500,000 worth of electrical goods linked to illegal mining activities and launched a crackdown on tax evasion related to digital assets.

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

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