Illegal Crypto Miners in Malaysia Increase Power Theft by 300% Since 2018

The incidences of electricity theft identified in Malaysia increased by 300% from 2018 to the end of 2024, primarily driven by the surge in illegal cryptocurrency mining activities.

These incidents were discovered during collaborative efforts involving the electricity provider, the Energy Commission, and law enforcement agencies.

According to the utility, “Coordinated operations and nationwide raids have effectively dismantled unlawful mining establishments, resulting in an uptick in reported cases from 610 in 2018 to 2,397 in 2024.”

Cryptocurrency mining involves the process of generating new blocks, authenticating transactions, and incorporating them into the blockchain that supports virtual currencies. This process is particularly labor-intensive for proof-of-work cryptocurrencies like Bitcoin, making it tempting for unscrupulous miners to steal electricity instead of paying for it, while gaining new tokens as a reward.

The most significant increase in reported thefts occurred post-2020. Statistics from the utility revealed that from 2020 to 2024, the annual average of electricity theft cases related to crypto was approximately 2,303. In addition, public complaints surged as more individuals became informed about reporting illegal mining activities.

While cryptocurrency mining is not prohibited in Malaysia, individuals who interfere with electrical systems may face penalties of up to 1 million ringgit, which translates to around $232,720, along with potential imprisonment for up to a decade.

Attempts to contact the electricity utility for a statement were made.