Malaysian electricity company loses over 100m due to unlawful Bitcoin mining activities
Tenaga Nasional Berhad (TNB), Malaysia’s national electricity provider, has suffered losses exceeding 440 million ringgit ($101 million) due to the theft of electricity for illegal Bitcoin mining activities, according to recent reports from The Star. TNB’s financial situation has been significantly impacted since 2020, with a loss of 103 million ringgit in 2023 alone. The director of Malaysia’s Criminal Investigation Department, Suhai Rizain, confirmed these figures.
The losses from crypto mining have been escalating over the years. In 2020, TNB reported losses of 5.9 million ringgit, which increased to 140.4 million ringgit in 2021, followed by 124.9 million ringgit in 2022, and 67.1 million ringgit last year.
TNB had previously reported similar figures in July this year, stating losses exceeding $755 million due to illicit Bitcoin mining activities from 2018 to 2023.
Akmal Nasir, the deputy minister of energy transition and water transformation, acknowledged that although crypto mining only accounts for a small portion of total energy consumption, it has a significant financial impact on the country.
Authorities have taken action against illegal mining operations, seizing nearly $500,000 worth of electrical items and cracking down on tax evasion involving digital assets.
The Criminal Investigation Department plans to thoroughly investigate the factors contributing to these substantial losses, particularly focusing 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, allowing users to earn Bitcoin. This practice leads to significant electricity consumption and results in theft when miners do not pay for the power they use.
