Malaysia faces over $100 million losses from electricity theft, largely linked to illegal Bitcoin mining operations.
Tenaga Nasional Bhd (TNB) has reported staggering losses due to electricity theft, totaling over $100 million (RM400 million) since 2020. This alarming figure reflects the growing impact of illegal Bitcoin mining operations across Malaysia. Comm Datuk Seri Mohd Shuhaily Mohd Zain, director of the Bukit Aman Criminal Investigation Department (CID), revealed the extent of the issue at a recent event, according to local reports.
TNB reported a loss of 5.9 million in 2020. The situation worsened significantly, with the loss increasing to RM 104.6 million in 2019 and RM140.4 million in 2021. The following year, the losses were slightly smaller, amounting to RM124.9 million, but the trend was still going downwards. In just 2023, the loss went up to RM103 million. Overall, TNB has lost about RM441 million from 2020, which shows a long-standing issue for the electric company.
Majority of Electricity Theft Cases in Malaysia Tied to Illegal Bitcoin Mining
Comm Mohd Shuhaily pointed out that one should assess factors that led to such losses to increase in the future. The CID wants to look into the drastic variation in numbers, especially between this year and the previous year. He said that although losses decreased last year, it is important to know why this happened. Some people believe that variations in market prices of bitcoins have impacted theft incidences, not to mention the constant fight against the process of mining that is considered unlawful.
The CID director testified that most electricity theft cases are related to illegal Bitcoin mining. This unlawful business gives TNB both financial problems and threats to the lives of people in society. In a recent vehicle handover ceremony, Comm Mohd Shuhaily thanked TNB for their assistance and pointed out that the new four-wheel drives procured recently will be useful in future operations against unlawful mining.
Other speakers included Zahari Dollah, the chairman of TNB Energy Services Sdn Bhd. On this matter, which he claimed was a major one, he underscored the need to work hand in hand with the police. The increasing number of reported cases of unauthorized Bitcoin mining requires TNB and police cooperation. Zahari also encouraged everybody to remain hopeful that more collaboration with the government would improve the fight against these unlawful businesses.
With Malaysia bearing the consequences of electricity theft associated with Bitcoin mining, TNB, and the police are increasing their efforts. The ongoing battle against illegal mining is critical for safeguarding resources and ensuring the integrity of the electric grid.
