Tenaga Nasional Berhad (TNB), Malaysia’s foremost electricity utility company, has reported a staggering 300% increase in power theft incidents linked to illegal cryptocurrency mining from 2018 to 2024. The company attributes this rise to the burgeoning global transactions in cryptocurrencies, according to local media sources.
The alarming statistics were compiled through a collaborative effort involving the Energy Commission, the Malaysian Anti-Corruption Commission, police, and local councils, revealing extensive insights into these illegal activities.
Data from TNB indicates that the number of power theft cases connected to illegal crypto mining rose from 610 in 2018 to 2,397 in 2024. The electricity board emphasized the urgency of addressing this trend.
TNB stated, “Joint operations and nationwide raids have successfully shuttered illegal mining operations. These enforcement actions have been pivotal in maintaining the stability of the power grid.”
Additionally, the statistics showed that, on average, there were 2,303 incidents of electricity theft associated with cryptocurrency mining each year from 2020 to 2024.
TNB Implements Smart Meter Technology to Combat Theft
Between January 2020 and December 2024, TNB received approximately 1,699 complaints concerning crypto-related power theft, averaging 340 each month.
“This increase in complaints reflects a growing public awareness regarding the reporting of illegal crypto mining activities,” TNB remarked.
In response to the surge of illegal operations, TNB has introduced ‘smart meters’ aimed at enhancing the detection of electricity theft and improving monitoring capabilities.
This initiative follows an analysis of consumption patterns to identify unusual energy usage, highlighting TNB’s proactive approach in safeguarding resources.
“We collaborate closely with relevant authorities and stakeholders to ensure fair and sustainable electricity usage, thereby guaranteeing reliability for all our customers,” the board added.
The smart meter technology functions by recording daily electricity consumption and transmitting data to TNB via radio-frequency signals.
Furthermore, TNB is exploring the use of artificial intelligence and predictive analytics to refine its monitoring processes.
In terms of legal measures, TNB has called for stricter penalties under the Electricity Supply Act. Offenders found tampering with electricity installations could face fines up to 1 million Ringgit (approximately $232,000) or imprisonment for up to 10 years, or both.
Significant Financial Losses Due to Energy Thefts, Says CID Director
Datuk Seri Mohd Shuhaily Mohd Zain, director of the Bukit Aman Criminal Investigation Department (CID), stated that TNB has suffered losses amounting to about 520 million Ringgit (around $121 million) due to electricity theft.
“Most of these thefts are linked to illegal cryptocurrency mining operations,” he revealed in an interview with The Star.
Shuhaily pointed out that many cryptocurrency mining syndicates typically operate from rented spaces like shops, warehouses, or residences with low pedestrian traffic.
“These syndicates often install heavy-duty ventilation systems, air conditioning units, and soundproofing materials to avoid detection,” he added.
The brazen criminals bypass electricity meters by tapping directly into the main power grid, allowing them to consume vast amounts of electricity—often equivalent to the consumption of an entire residential block.
“These syndicates constantly relocate their operations to evade detection,” Shuhaily indicated, noting that they tend to move every few months to new premises.
In February, Malaysian authorities discovered an illegal Bitcoin mining operation following an explosion at the site. Investigations revealed that illegal power connections were made for cryptocurrency mining, leading to a short circuit incident.
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