Illegal Crypto Miners in Malaysia Stole $723M in Electricity: Deputy Minister

Last Updated on July 11, 2024

Written by

Efe Bravo

Key Takeaways:

Malaysia’s Deputy Minister of Energy Transition and Water Transformation reported $723 million in electricity theft by illegal crypto miners from 2018 to 2023.
Over 2,000 seized mining machines, valued at $467,000, were destroyed, highlighting efforts to curb illegal mining activities.
Cryptocurrency mining is legal, but electricity theft severely impacts Tenaga Nasional Berhad and local communities, prompting increased enforcement and focus on renewable energy.

Malaysia’s Deputy Minister of Energy Transition and Water Transformation reported $723 million in electricity theft by illegal crypto miners from 2018 to 2023.

This announcement was made at an event where over 2,000 seized mining machines, worth about $467,000, were destroyed.

Malaysian crypto miners stole $722 million worth of power: energy official https://t.co/WNpHiQv9s5
— The Block (@TheBlock__) July 11, 2024

The theft has severely impacted the state power company, Tenaga Nasional Berhad, and local communities.

Miners often bypass electricity meters or divert power lines to evade detection, but energy companies have developed methods to spot unusual consumption, leading to equipment seizures.

Illegal crypto miners in Malaysia swiped $722M in electricity from 2018 to 2023. Govt’s playing catch-up, but who knows if they can really stop this? #CryptoChaos #ElectricityTheft https://t.co/iDmJJ0fq8v
— Satoshi Club Alerts (@satoshi_alerts) July 10, 2024

Cryptocurrency mining is legal in Malaysia, but electricity theft is not.

Authorities have been seizing mining equipment since 2019, with some machines destroyed using steamrollers.

The ministry is focusing on curbing illegal mining and boosting renewable energy sources.

Additionally, Malaysia’s Securities Commission ordered Huobi Global to stop operations for failing to register, with only a few platforms, like Luno and MX Global, officially registered.