TL;DR
- National power company, TNB, has reported over $1.11 billion in losses from illegal energy use since 2020.
- 13,827 premises with tampered meters for cryptocurrency mining were identified, now viewed as an energy security issue.
- Authorities are implementing databases and smart meters for preventive and coordinated surveillance.
Malaysia is cracking down on illegal energy consumption, as the Asian country is concerned about rising losses linked to illegal digital asset mining operations. The scale of the fraud poses a significant threat to the nation’s energy security, with staggering figures surpassing one billion dollars.
Malaysian utility company Tenaga Nasional Bhd (TNB) has released a report detailing losses from illegal energy use, amounting to approximately $1.11 billion (4.6 billion ringgit).
The company indicated that these losses accumulated between 2020 and August of this year. The primary cause is electricity theft by Bitcoin mining in Malaysia, an activity that, while not specifically regulated, becomes illegal when supply meters are tampered with or bypassed, violating the Electricity Supply Act.
Furthermore, the Ministry of Energy and Water Transformation explained that 13,827 facilities were identified using electricity illicitly to power mining equipment during the analyzed period.
Interagency Cooperation and Technological Surveillance
To combat this wave of infractions, Tenaga Nasional Bhd (TNB) coordinated joint inspections with multiple law enforcement agencies. These operations involved the police, the communications regulator, and the anti-corruption agency, leading to the seizure of numerous Bitcoin mining machines at identified premises.
Given the itinerant nature of these illegal operations, which frequently change location after raids, TNB shifted its focus towards preventive surveillance systems. They developed a database that registers owners and tenants of premises suspected of involvement in electricity theft by Bitcoin mining in Malaysia. This system helps to profile high-risk locations, identify consumption patterns, and facilitate future inspections across different states.
In addition, Malaysia is investing in real-time monitoring measures. The installation of smart meters in electricity distribution substations is key to tracking consumption patterns and quickly identifying tampering. These devices detect sudden spikes or irregular behaviors, allowing TNB to issue alerts and respond before electricity theft by Bitcoin mining in Malaysia spreads.
The country remains an attractive destination for miners due to its competitive prices, which further complicates law enforcement. Therefore, authorities have chosen to strengthen interagency cooperation and the use of surveillance technologies, rather than introducing new regulations dedicated to mining.
