Tenaga Nasional Reports Over $1 Billion in Losses Due to Crypto Power Theft

We are witnessing a serious challenge for Tenaga Nasional Berhad (TNB), Malaysia’s largest electricity utility. Between 2020 and August 2025, TNB lost more than RM 4.57 billion (about US$1.1 billion) because of illegal electricity use by crypto miners.  This problem isn’t small or isolated. According to the Ministry of Energy Transition and Water Transformation, 13,827 premises were identified as illegally drawing power to run crypto-mining operations. These are not just hobbyists; in many cases, they are large-scale operations tapping into the grid without paying. When we look deeper, we realize these activities seriously threaten both the financial health of TNB and the stability of Malaysia’s power system.

What Exactly Happened: The Scale of the Problem

TNB and other agencies uncovered activity that spans thousands of locations. From 2020 to August 2025, nearly 13,827 sites were found to be stealing electricity specifically for crypto mining. In a parliamentary reply, the energy ministry confirmed this was a major factor in TNB’s mounting losses. The financial impact is huge: RM 4.57 billion in lost electricity revenue. To put that into perspective, this money could have been used to upgrade infrastructure, invest in renewable energy, or improve grid resilience.

How Illegal Crypto Mining Causes These Losses

Crypto mining, especially for proof-of-work currencies like Bitcoin, demands an enormous amount of power. Instead of paying for that power, some people go the illegal route: they tamper with meters, bypass connections, or wire directly into the electricity distribution board.  These setups are not always simple. According to TNB and law enforcement, some syndicates run high-powered rigs 24/7. They mount strong ventilation systems and air-conditioning to cool the machines, and even install soundproofing to avoid detection.

When power is stolen at this scale, it’s not just money lost; it’s a threat to grid safety. Illicit wiring can be dangerous, increasing the risk of fires and overloads.

Economic Impact: Who Pays the Price

When TNB loses billions to theft, someone has to absorb the cost. Unfortunately, that burden often falls on honest consumers. Higher losses can force TNB to raise prices or reduce its investments in grid upgrades. Beyond consumers, the national economy suffers. This electricity theft weakens TNB’s ability to invest in long-term infrastructure, like renewable energy or smart-grid technologies. According to officials, illegal mining endangers not just TNB’s finances but also Malaysia’s overall economic stability.

There is also a safety risk. These illegal mining farms often violate building and electrical safety codes, putting nearby homes and properties at risk.

Government and Law Enforcement Crackdown

The scale of this problem has pushed TNB to work closely with law enforcement, anti-corruption agencies, and regulators. These collaborations have resulted in raids, seizures, and stricter monitoring. For instance, in August 2025, authorities seized 61 Bitcoin mining machines across nine locations in Manjung district after a TNB-led operation. TNB has also built a detailed database of premises suspected of electricity theft. This helps the company track and inspect suspect properties, whether they are residential, shop lots, or warehouses. The database contains owners’ and tenants’ data to make enforcement more precise.

On the tech side, TNB is rolling out smart meters and a pilot “Distribution Transformer Meter” (DTM) program in substations. These tools help monitor electricity usage in real-time and flag abnormal patterns that could indicate theft. From the legal side, Malaysia’s Electricity Supply Act punishes meter tampering. Offenders can face up to RM 1 million fine and 10 years in jail.

Why Crypto Power Theft Is Rising So Fast

Several factors are driving the rapid increase in this problem:

• Crypto boom: The rising value of Bitcoin and other cryptocurrencies makes mining more profitable. That creates a strong incentive to cut costs by stealing electricity.
• Organized crime: Some of these are not lone individuals. TNB and law enforcement suspect syndicates are involved, operating large-scale and well-equipped setups.
• Weak enforcement: Although meter tampering is illegal, there hasn’t always been consistent regulation specifically targeting crypto mining.
• Underground operations: Many of these miners use hidden or rented properties, like warehouses or shop-lots, that are less likely to be noticed by authorities or neighbors.
• Low detection risk: Before smart meters and real-time monitoring, it was easier to go unnoticed. These systems are only now being scaled up to catch abusers.

Future Risks if the Issue Continues

If this theft continues unchecked, the consequences could be severe:

• Grid stability: Ongoing illegal draw can strain TNB’s infrastructure, increasing the risk of blackouts or failures.
• Financial weakness: Continuous losses may limit TNB’s ability to invest in clean energy or upgrade the grid.
• Tariff hikes: To cover losses, TNB may raise prices, which hurts ordinary households and businesses.
• Investor distrust: If TNB is seen as unable to control theft, it could undermine confidence in Malaysia’s energy and digital economy.
• Safety hazards: Illegal wiring and poorly maintained setups increase fire risk, endangering lives and property.

What Is Being Done: Solutions and Responses

We can see a multi-pronged approach from TNB and the government, but more is needed:

• Smart infrastructure: Expanding smart meter deployment and upgrading substations with real-time usage tracking is crucial. This will help detect theft patterns early.
• Legal enforcement: Continue strengthening laws and penalties around meter tampering. Encouraging stricter prosecution can deter future offenders.
• Database tracking: Using the internal database to target inspections and enforcement. Keeping detailed records helps TNB focus its crackdowns.
• Public awareness: Educating communities about the signs of illegal mining (strange sounds, heavy ventilation, unusual electricity usage) encourages reporting.
• Collaboration: TNB’s partnership with police, anti-corruption agencies, and regulators is key. Joint raids and intelligence sharing must continue and scale up.

Conclusion

In short, Tenaga Nasional (TNB) is facing a growing and costly problem. Billions of ringgit are being lost due to illegal crypto mining operations drawing electricity without paying. This isn’t just a financial issue; it’s a threat to grid stability, public safety, and the future of Malaysia’s energy system. We strongly believe that tackling this issue requires a combined effort: stronger tech, better laws, smarter enforcement, and more public involvement. If we get it right, TNB can recover lost revenue, protect consumers, and build a more resilient and efficient power system for everyone.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.