In Malaysia, illegal cryptocurrency mining is becoming a bigger problem because of unclear policies and low electricity costs. Mining itself is not illegal, but the widespread theft of electricity to power mining rigs has caused utility companies to lose a lot of money and generated worries about public safety.

In Malaysia, between 2018 and 2023, almost $723 million worth of electricity was stolen because of illegal crypto mining operations. During the disposal of more than 2,000 seized mining machines valued at around $467,000, Deputy Minister of Energy Transition and Public Utilities Akmal Nasrullah Mohd Nasir revealed this shocking number.

Tenaga Nasional Berhad (TNB), the national utility company, has always said that crypto mining costs them money. TNB lost RM 141 million in 2021 alone because of mining operations that were not allowed. The losses kept going in 2022 when they were RM 125 million, and then they fell to RM 67.1 million in 2023. However, the data clearly show that this is a problem that won’t go away.

The Malaysian government has stepped up its attempts to stop electricity theft in response to the rise in crime. In 2021, authorities seized more than $13 million worth of mining rigs and arrested more than 500 people for using electricity illegally. In a few well-known cases, police destroyed the stolen equipment by steamrolling it, sending a powerful message to criminals.

In Bandar Puncak Alam, authorities found illegal crypto-mining activity inside a house after a fire broke out earlier in 2025. Investigations showed that the building had nine mining rigs that were connected to electrical systems that had been tampered with. These kinds of systems not only steal electricity but also put nearby populations at great risk of fire and electrical hazards.

In Malaysia, it’s legal to mine cryptocurrencies, but there aren’t any clear rules around licensing, which has created a loophole. Miners are taking advantage of this grey area by running power-hungry operations without the right metering or permission, especially in homes and businesses.

Experts have said that mining is not against the law, but stealing electricity without permission is. Tenaga Nasional Berhad has suggested special prices for legal crypto miners in the past to stop electricity theft and encourage miners to register their businesses properly.

Illegal mining operations typically put too much stress on local electrical grids, which causes blackouts, fires, and damage to public infrastructure. In 2021, there were more than 7,200 reports of people tampering with electricity, which is a big jump from the 610 reports in 2018. 

These illegal connections put homeowners at risk and unfairly make legal users pay more. Overloading has caused wear and tear on electricity lines and substations, which has made it more expensive for the government and utility companies to keep them in good shape.