In a surprising disclosure, Malaysia’s Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, revealed that Crypto Miners have illegal stolen about $723 million worth of electricity from 2018 to 2023.
This announcement came during an event where authorities destroyed more than 2,000 confiscated mining machines and electrical equipment, with a total value of approximately $467,000.
The Magnitude of the Theft
The extensive theft of electricity has had a significant impact on Malaysia’s state-controlled power operator, Tenaga Nasional Berhad, and has disrupted local communities. Illegal mining operations typically avoid proper registration with authorities by bypassing electricity meters or tapping directly into power lines to evade detection.
According to Nasir, “Theft of electricity by cryptocurrency miners occurs because they believe their activities can go undetected without meters on their premises.” However, he emphasized that energy companies have methods to identify unusual energy consumption patterns, which played a critical role in the October 2022 operation that resulted in the seizure of over 2,000 items.
Akmal Nasir also underscored the irony of the situation, stating, “The government is prioritizing an energy transition agenda to increase renewable energy sources. Yet, electricity theft totaling hundreds of millions, even billions of ringgit annually, persists in our country.”
Kerajaan heboh nak laksanakan agenda peralihan tenaga sebab nak tambah sumber tenaga yang baru.
— Akmal Nasir (@akmalnasir) July 10, 2024
Tapi dalam masa yang sama kecurian elektrik sampai ratusan juta, ada tahun mencecah berbilion ringgit setahun berlaku di negara kita.
Ironi sungguh. pic.twitter.com/ZkWz7eIWrn
Effects and Enforcement
While cryptocurrency mining itself remains legal in Malaysia, the unauthorized use of electricity to run these operations is considered a criminal offense. Universiti Teknologi MARA reaffirmed this position in December 2022. Malaysian authorities have been actively pursuing illegal operations since at least August 2019, following the country’s criminal procedure laws.
As a symbolic gesture of enforcement, some of the seized mining machines were crushed by a steamroller during a recent event. Nasir emphasized that combating illegal miners has been a focal point for his ministry, alongside initiatives aimed at boosting Malaysia’s renewable energy capacity.
Regulatory Actions
Malaysia has taken a strong stance against unregistered cryptocurrency exchanges. Last year, the Securities Commission Malaysia instructed Huobi Global to halt its operations due to non-registration of its trading services. Currently, only a limited number of exchanges, such as HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International, are officially licensed to operate in the country.
The significant electricity theft by illegal cryptocurrency mining operations in Malaysia highlights the regulatory challenges in overseeing the growing crypto industry. As Malaysia continues to expand its renewable energy sources and clamp down on illicit activities, these efforts are aimed at stabilizing and securing the country’s energy infrastructure and financial landscape.
