Malaysia's power grid has been dealing with an expensive and persistent threat, and it has nothing to do with natural disasters or infrastructure failures. The real culprit is illegal cryptocurrency mining, a global trend that has quietly taken root in Malaysia. According to Tenaga Nasional Berhad (TNB), electricity theft linked to these underground mining operations has resulted in a staggering RM4.57 billion in losses from 2020 up to August this year.

And this isn't a rare occurrence. TNB discovered 13,827 premises involved in electricity theft for crypto mining, indicating that the issue is widespread, organised, and profitable enough for these operators to take big risks.

Why Illegal Crypto Mining Is So Dangerous

While cryptocurrency mining is often perceived as a tech hobby or a digital business, the reality is very different when it involves electricity theft. Mining rigs draw an enormous amount of power. Instead of paying the equally enormous utility bill, illegal miners typically bypass TNB's meters and connect directly to the main supply lines.

This method not only deprives the national utility of revenue, but also endangers everyone around them. Unregulated setups can lead to overheated wiring, damaged infrastructure, increased fire risks and unstable voltage in the surrounding area. Deputy Prime Minister Datuk Seri Fadillah Yusof stressed that this form of theft compromises Malaysia's economic stability and places pressure on the national energy supply system.

The sheer scale of the theft reveals just how attractive Malaysia is as a target. With its relatively affordable electricity rates and large commercial areas, rogue crypto miners see the country as prime territory for unauthorised operations.

How TNB Is Tracking Down Illegal Mining Networks

To counter the growing problem, TNB has launched a comprehensive and increasingly sophisticated strategy.

One of the most important steps is the creation of a dedicated internal database. This system tracks properties suspected of engaging in electricity theft, catalogues ownership and tenancy information, and records irregular usage patterns. By maintaining this centralised data, TNB can identify clusters of suspicious activity and deploy enforcement teams with precision instead of relying on random checks.

Enforcement itself has become a collaborative effort. TNB now works alongside the Ministry, the Energy Commission (ST), Royal Malaysia Police and other authorities to conduct joint raids. During these operations, officers enter the premises, disconnect illegal lines, seize mining servers and gather evidence for prosecution. These raids have been particularly effective in shutting down larger, well-hidden mining farms that often operate in rows of shoplots or industrial units.

Technology is also playing a major role. Through the Distribution Transformer Meter (DTM) pilot project, TNB can detect discrepancies in power distribution at the transformer level. When output readings don't match official meter records, it signals the likelihood of theft happening somewhere within that zone. At the consumer level, smart meter installation has accelerated, giving TNB real-time alerts for tampering, abnormal consumption patterns and sudden spikes that would be impossible in regular households or small businesses.

Public participation is another crucial component. TNB continues to run awareness campaigns to educate consumers about the dangers of electricity theft and the signs that may indicate illegal mining next door. Many of these operations only get discovered when neighbours report suspicious setups, unusual noises from cooling fans or strange wiring entering a unit. Community awareness, combined with technical monitoring, forms a strong defence against illegal operators.

Why This Problem Might Continue

Despite aggressive enforcement, illegal crypto mining remains lucrative — especially when the electricity is stolen. With global cryptocurrency prices fluctuating but still profitable, syndicates are likely to continue attempting to operate under the radar. The ease of renting commercial units and the mobility of mining equipment make it difficult to eliminate the issue entirely.

However, with TNB's multi-layered monitoring systems, improved data analytics, smart meters and inter-agency cooperation, the authorities have far more visibility today than they did a few years ago. The infrastructure for catching offenders is improving, and the risks for illegal miners are getting higher.

The battle isn't over, but Malaysia is far better prepared now than when the problem first began escalating.