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 revelation comes as a significant blow to the company, with the theft significantly impacting TNB’s finances since 2020.
According to local reporting from The Star, TNB’s director of Malaysia’s Criminal Investigation Department, Suhai Rizain, disclosed that the losses from crypto mining have been on the rise over the 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 2023. The most recent figures indicate a loss of 103 million ringgit in 2023 alone.
Earlier this year in July, TNB reported even more alarming 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 significant financial impact on the country.
Authorities have taken action against illegal mining operations, seizing nearly $500,000 worth of electrical items linked to these activities and launching a crackdown on tax evasion involving digital assets. The Criminal Investigation Department is now 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 can lead 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 electricity company highlights the challenges posed by cryptocurrency-related activities on national infrastructure and financial systems. As authorities continue to crack down on illicit mining operations, it remains to be seen how the country will address and mitigate the risks associated with such activities in the future.