Tenaga Nasional Berhad (TNB), Malaysia’s national electricity provider, has suffered losses exceeding 440 million ringgit (approximately $101 million) due to the theft of electricity for illegal Bitcoin mining activities, according to reports from The Star. The director of Malaysia’s Criminal Investigation Department, Suhai Rizain, revealed that TNB’s finances have been significantly impacted since 2020, with a loss of 103 million ringgit in 2023 alone.
The losses stemming from crypto mining have seen a sharp increase over the years. TNB reported losses of 5.9 million ringgit in 2020, which surged to 140.4 million ringgit in 2021, followed by 124.9 million ringgit in 2022, and 67.1 million ringgit last year.
In July of this year, TNB reported similar figures, stating losses exceeding $755 million due to illicit Bitcoin mining activities between 2018 and 2023. Akmal Nasir, the deputy minister of energy transition and water transformation, acknowledged that while crypto mining only accounts for a small portion of total energy consumption, it has a significant financial impact on the country.
As part of efforts to combat these illegal activities, authorities have confiscated nearly $500,000 worth of electrical items associated with illegal mining operations and have initiated a crackdown on tax evasion related to digital assets. The Criminal Investigation Department plans to investigate the factors contributing to these substantial losses, with a particular focus on the trends observed in 2022 and 2023.
Illegal Bitcoin mining involves the unauthorized use of electricity to power computers that solve complex mathematical problems, enabling users to earn Bitcoin. This practice can result in significant electricity consumption, leading to theft when miners fail to pay for the power they utilize.