Malaysia’s Tenaga Nasional Loses Over US$1 B to Crypto Mining Power Theft

Malaysia’s national power utility, Tenaga Nasional Bhd (TNB), has reported losses exceeding US$1.1 billion due to illegal electricity use by cryptocurrency miners between 2020 and August 2025. According to the country’s energy ministry, 13,827 premises were found tapping power to mine digital currencies, primarily Bitcoin, costing TNB about 4.6 billion ringgit in total.

Authorities say that while there are no specific laws prohibiting crypto mining, tampering with or bypassing electricity meters is illegal under the Electricity Supply Act. In response to the crisis, TNB has partnered with the police, communications regulators, and anti-corruption agencies to raid suspected sites and seize mining equipment.

To prevent further theft, TNB has built a detailed database of owners and tenants at suspicious locations to aid monitoring and enforcement. The company is also rolling out smart meters at substations, allowing real-time detection of abnormal power usage patterns that could signal illicit mining operations.

Analysis / Impact:
The scale of loss by TNB shows how lucrative—and damaging—unauthorised crypto mining has become when unchecked. For a utility company, absorbing over a billion dollars in losses puts serious strain on finances, potentially affecting power pricing, investment in infrastructure, and long-term service reliability.

For governments and regulators, the incident underscores a critical gap: while cryptocurrency is not banned in Malaysia, the regulatory framework didn’t anticipate the parallel surge in electricity theft tied to mining. This suggests an urgent need for legal reforms, tougher enforcement and better technology to manage energy misuse.

Moreover, this problem illustrates a broader risk for developing markets: the energy-intensity of crypto mining can clash directly with public utility stability. Untreated, such losses can undermine both the financial health of national utilities and the integrity of the energy grid.