Malaysia’s largest electricity utility, Tenaga Nasional Berhad (TNB), has reported a significant loss of over $755 million due to illicit Bitcoin mining activities since 2018. This has had a notable impact on the country’s energy sector, as stated by Akmal Nasir, the deputy minister of energy transition and water transformation of Malaysia.

Despite crypto mining representing a small fraction of total energy consumption, the financial repercussions have been substantial. Nasir highlighted that the losses, which should have contributed to revenue, have instead escalated into billions.

“These losses, stemming solely from Bitcoin mining which should have contributed to revenue, have escalated into billions.”

Additionally, Nasir pointed out that further losses from illegal electricity connections have led to annual financial setbacks ranging from $22 million to $44 million. This has potential implications for citizens, who might face tariff adjustments or other related measures.

Earlier reports indicated that nearly $500,000 worth of electrical items were seized, including 349 Bitcoin mining rigs and 1,219 appliances without safety labels. This underscores the ongoing efforts to combat illegal activities affecting the energy sector.

In parallel, Malaysian authorities are intensifying their crackdown on tax evasion involving digital assets. In mid-June, the Inland Revenue Board (IRB) of Malaysia collaborated with the police and CyberSecurity Malaysia for a major operation in the Klang Valley. During this operation, law enforcement accessed crypto trading data from mobile devices and computers to trace digital assets and assess profits, although the full extent of tax evasion remains unclear.

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