Electricity Theft Linked to Cryptocurrency Mining Surges by 300% in Malaysia

Strategic Insights -

Electricity theft linked to illegal cryptocurrency mining in Malaysia has seen a significant spike, with numbers surging by nearly 300% from 2018 to 2024. According to Tenaga Nasional Berhad (TNB), the rise was uncovered through joint operations with various authorities. The utility provider reported that joint operations and nationwide raids have successfully shut down illegal mining setups, resulting in an increase in detected cases from 610 in 2018 to 2,397 in 2024. This significant increase reflects the growing awareness of cryptocurrency-related activities and the efforts of authorities to combat electricity theft.

Key Takeaways:

  • The number of electricity theft cases linked to cryptocurrency activities in Malaysia increased by nearly 300% from 2018 to 2024, from 610 to 2,397.
  • Joint operations between TNB, the Energy Commission, police, Malaysian Anti-Corruption Commission, and local councils have led to the shutdown of 1,787 illegal mining setups between 2018 and 2024.
  • The average number of complaints related to cryptocurrency was 1,699, with an average of 340 per month, reflecting increasing public awareness of reporting illicit crypto mining activities.
  • TNB detected suspicious electricity usage through continuous consumption pattern analysis and by collaborating with authorities to ensure reliable power supply for all users.
  • To improve detection, TNB has increased the deployment of smart meters to log daily electricity use and transmit data via radio frequency for real-time monitoring and billing.
  • Under the law, tampering with electrical installations can result in a maximum RM1 million fine, up to 10 years' jail, or both, while offenders may also be charged under Sections 379 and 427 of the Penal Code for theft and mischief.
  • A high-profile case in January 2024 saw 60 homeowners and shop operators in Perak hit with electricity bills ranging from RM30,000 to RM1.2 million due to illegal connections set up by tenants involved in crypto mining.

Statistics:

  • The number of electricity theft cases linked to cryptocurrency activities in Malaysia increased from 610 in 2018 to 2,397 in 2024 (a 300% increase).
  • Between January 2020 and December 2024, TNB recorded an average of 2,303 electricity theft cases annually linked to cryptocurrency activities.
  • There was an average of 340 complaints per month related to cryptocurrency activities between 2018 and 2024.

Sources:

  • The Star
  • Tenaga Nasional Berhad (TNB)