Key Takeaways:
- Crypto miners in Malaysia stole $722 million worth of electricity from 2018 to 2023
- Activities have severely impacted Malaysia’s state-controlled power operator
In a significant blow to Malaysia’s energy sector, cryptocurrency miners have stolen RM3.4 billion ($722 million) worth of electricity between 2018 and 2023, according to Akmal Nasrullah Mohd Nasir, Deputy Minister for Energy Transition and Water Transformation.
Nasir reported that illegal crypto mining has become increasingly widespread, impacting both the state-controlled power operator, Tenaga Nasional Berhad, and local communities. These miners often bypass registration with authorities and manipulate electricity meters or divert power from lines to avoid detection.
“The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises,” Nasir explained. This illicit activity involves tampering with electricity meters or rerouting power directly from lines to evade charges.
This issue isn’t isolated to Malaysia. A report from last year highlighted similar problems in the UK, where crypto mining and cannabis farms contributed to a rise in electricity theft.
Additionally, Europol and Ukrainian authorities recently arrested a crypto miner who allegedly earned $2 million while stealing electricity.
The Malaysian government is now prioritizing efforts to curb electricity theft among crypto miners. This initiative is part of a broader strategy to promote green and renewable energy, aiming to reduce the country’s carbon footprint.
Recently, authorities disposed of 2,022 seized items, including Bitcoin mining machines, worth a total of RM2.2 million ($468,000).
“These items have been ordered to be disposed of by the deputy public prosecutor in accordance with Sections 406A and 407 of the Criminal Procedure Code after going through the court and compound process,” Nasir added.
Beyond addressing electricity theft, Malaysian regulators are also working to legalize and regulate crypto exchanges. In May of the previous year, the Malaysian Securities Commission ordered Huobi Global, a leading exchange, to cease operations for failing to register locally. Currently, only platforms such as HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International are officially licensed for crypto trading in Malaysia.
This dual approach of enforcing stringent measures against electricity theft and regulating the crypto trading environment underscores Malaysia’s commitment to creating a sustainable and lawful digital asset industry.
