What happened?
Power thefts in Malaysia, primarily due to illegal cryptocurrency mining, have surged by 300% between 2018 and 2024. Tenaga Nasional Berhad (TNB) identified a significant increase in illegal mining activities as global crypto transactions gained popularity. In collaboration with various enforcement agencies, TNB has actively shut down illegal operations to maintain the stability of the power grid.
Who does this affect?
This issue impacts TNB and its financial resources, as the company has lost about 520 million Ringgit ($121 million) due to electricity theft. The illegal mining syndicates often operate from rented locations like shops or homes, affecting property owners and local communities. Additionally, these activities pose a risk to public safety and infrastructure by overriding and damaging electrical systems.
Why does this matter?
The rise in electricity theft for illegal crypto mining poses a threat to the energy market by straining resources and increasing costs for legitimate consumers. TNB’s response with advanced smart meters and proposed legal actions could set a precedent for tackling crypto-related energy theft globally. Effective measures may stabilize energy distribution and restore confidence in regulatory systems handling such crimes.