Malaysian Government Battles $722 Million Cryptocurrency Electricity Theft

• Since 2018, Malaysian cryptocurrency miners have illicitly consumed electricity valued at $722 million. Stopping this theft is a government priority.
• Crypto mining drives global electricity theft, with significant cases in Malaysia, the UK, and Uzbekistan.
• Uzbekistan identified $6.5M in stolen electricity from illegal crypto mining in 2023, underscoring a global issue.

In Malaysia, unlicensed Bitcoin miners have Stolen electricity valued at $722 million between 2018 and 2023. The deputy minister of energy transition and water transformation, Akmal Nasrullah Mohd Nasir, revealed this figure at an event disposing of seized items, including bitcoin mining equipment.

Nasrullah emphasized the priority of stopping electricity theft by crypto miners. He noted that these miners believe their activities go undetected due to the absence of meters. However, energy supply companies have methods to identify unusual energy consumption patterns.

Addressing the Impact and Countermeasures

Nasrullah emphasized the harm that electricity theft does to Tenaga Nasional Berhad, the only utility provider in Malaysia. Moreover, it impacts Malaysia and its citizens. The government’s focus extends beyond stopping theft to boosting renewable energy production. Besides, electricity theft involves using power without paying or registering with utility companies. Individuals tamper with meters or redirect electricity from power lines.

Significantly, this issue is not isolated to Malaysia. In the UK, reports show that crypto mining and cannabis farms contribute to rising electricity theft. Earlier this year, Europol and Ukraine arrested a crypto miner who made $2 million while stealing electricity. Hence, electricity theft in the crypto industry is a global concern.

International Perspective on Electricity Theft

In the first half of the year, Uzbekistan’s energy inspection agency, Uzenergoinspektsiya, identified 75 illegal cryptocurrency mining instances. These cases amounted to $6.5 million in stolen electricity. Consequently, the agency recalculated 15.9 million kWh of electricity.

Uzenergoinspektsiya found over 4,500 instances of unauthorized electricity and gas use in the same period. Violators included methane filling stations, greenhouses, textile enterprises, and lime producers. Moreover, nearly 3,400 administrative cases were opened, with more than half involving electricity theft.

Furthermore, the control and chemical laboratory conducted quality checks of petroleum products at gas stations, identifying 91 violations. They prevented the sale of 3.8 million liters of low-quality gasoline. During January-June, Uzenergoinspektsiya examined 5,300 power supply projects. Less than two-thirds of applications were approved.

Malaysia’s crackdown on illegal crypto mining highlights the severe impact of electricity theft. The global nature of this issue is evident in similar cases in the UK and Uzbekistan. As Malaysia continues to address this challenge, the focus on renewable energy production and technological advancements in energy detection remains crucial.