Back
Malaysia Reports $1.1 Billion Power Loss from Illegal Crypto Mining

Malaysia Reports $1.1 Billion Power Loss from Illegal Crypto Mining

Malaysia’s energy ministry says illegal crypto mining drained over $1.1 billion from state utility TNB, with nearly 14,000 sites bypassing meters since 2020.

Fact Check
The statement is strongly supported by multiple, high-authority sources. There is a high degree of consistency across the evidence provided. Several news outlets, including the international agency Reuters and major Malaysian newspapers like The Star and the New Straits Times, directly corroborate the claim. They report that Malaysia's national utility provider, Tenaga Nasional Bhd (TNB), suffered massive losses due to electricity theft from illegal cryptocurrency mining. The financial figures are also consistent. While the initial statement uses a US dollar amount ($1.1 billion), multiple primary sources from Malaysia report the loss as RM4.57 billion. At a plausible exchange rate (approx. 4.15 MYR to 1 USD), RM4.57 billion is equivalent to approximately $1.1 billion, reconciling the figures across different reports. The information's credibility is further enhanced by its attribution to official sources. Reports from The Star and Yahoo News explicitly state that the RM4.57 billion figure was announced in the Malaysian Parliament by the Energy Transition Minister. Furthermore, supplementary sources confirm that electricity theft for crypto mining is a known and prosecuted crime in Malaysia, lending contextual support to the plausibility of such a large-scale financial loss. Sources that were irrelevant were disregarded as they discussed different topics entirely, and no sources provided contradictory evidence.
    Reference: 12
Summary

Malaysia’s Energy Ministry reported Tenaga Nasional Berhad (TNB) lost over $1.1 billion between 2020 and August 2025 due to electricity theft by cryptocurrency miners. Officials identified 13,827 sites where operators illegally modified or bypassed meters to power mining rigs, in violation of the Electricity Supply Act. Enforcement efforts have focused on dismantling such operations and preventing further strain on the national grid and financial losses to the utility.

Terms & Concepts
  • Cryptocurrency mining: The process of using computing power to validate blockchain transactions and earn digital currency rewards.
  • Electricity meter bypass: An illegal modification that prevents accurate measurement of electricity consumption, typically to avoid payment.
  • Tenaga Nasional Berhad (TNB): Malaysia’s national electric utility company, responsible for electricity generation, transmission, and distribution.