Malaysia’s national electricity provider, Tenaga Nasional Berhad (TNB), has reported losses exceeding 440 million ringgit (approximately $101 million) due to electricity theft linked to illegal Bitcoin mining activities.

Impact on TNB’s Finances

According to recent local reports, this theft has significantly impacted TNB’s finances since 2020. In 2023 alone, the loss amounted to 103 million ringgit. Suhai Rizain, the director of Malaysia’s Criminal Investigation Department, highlighted the alarming increase in losses over the years.

Yearly Breakdown of Losses

The financial impact of illegal crypto mining has escalated sharply:

  • In 2020, TNB recorded losses of 5.9 million ringgit.
  • This figure surged to 140.4 million ringgit in 2021.
  • In 2022, the losses were 124.9 million ringgit.
  • Last year, the losses were 67.1 million ringgit.

Bitcoin Mining in Malaysia

Earlier this year in July, TNB reported similar figures, noting losses exceeding $755 million due to illicit Bitcoin mining activities from 2018 to 2023. The deputy minister of energy transition and water transformation, Akmal Nasir, acknowledged that while crypto mining accounted for a small portion of total energy consumption, it had a significant financial impact on the country.

Seizures and Crackdowns

Authorities have seized nearly $500,000 worth of electrical items linked to illegal mining operations and have launched a crackdown on tax evasion involving digital assets. The Criminal Investigation Department plans to investigate the factors contributing to these substantial losses, particularly the trends observed in 2022 and 2023.

Understanding Illegal Bitcoin Mining

Illegal Bitcoin mining involves using unauthorized electricity to power computers that solve complex mathematical problems, enabling users to earn Bitcoin. This practice leads to significant electricity consumption, resulting in theft when miners do not pay for the power they use.

“Illegal Bitcoin mining has become a significant issue, leading to substantial financial losses for electricity providers like TNB,” said Suhai Rizain.

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