Malaysia: Illegal cryptocurrency mining activities have stolen over 700 million US dollars in electricity since 2018.

In the increasingly competitive mining industry, reducing mining costs has become the most important issue for mining companies. How miners obtain cheap energy, even involving electricity theft, has become a common speculation. Many news reports attribute electricity theft to mining activities, whether this is true or just a statement provided by government agencies for explanation, remains to be debated.

Malaysian Crypto Miners Allegedly Stole Over $700 Million Worth of Electricity

According to a report by Malay Mail, illegal cryptocurrency miners in Malaysia have allegedly stolen electricity worth $723 million since 2018.

Malaysian Deputy Minister of Energy Transition Akmal Nasrullah Mohd Nasir revealed this staggering figure at an event, where a total of 2,022 related equipment worth approximately $467,000 were seized and destroyed, including Bitcoin mining machines and electrical equipment.

Nasir stated that these illegal mining activities have not only caused significant losses to Malaysia's national power utility company, Tenaga Nasional Berhad, but also impacted local residents.

He pointed out:

The electricity thieves usually do not register with the relevant authorities. They find ways to bypass meters or steal electricity from power lines, but power companies have various ways to detect abnormal energy consumption in certain areas.

Malaysia Has Previously Destroyed Thousands of Mining Machines

Since August 2019, Malaysian officials have been cracking down on illegal mining operations, seizing over 2,000 devices in a 2022 operation and destroying them. Nasir mentioned that the destruction process was carried out in accordance with the country's criminal procedure law.

He emphasized that combating illegal cryptocurrency mining and increasing Malaysia's renewable energy sources have always been two top priorities for his department.

According to a December 2022 explanation by Universiti Teknologi MARA in Malaysia, mining cryptocurrency is not illegal in the country, but stealing electricity for mining purposes is considered illegal.

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Is Electricity Theft Becoming Synonymous with Mining?

As competition in the mining industry intensifies, reducing mining costs has become the most crucial issue for mining companies. How miners obtain cheap energy, even if it involves electricity theft, has become a common speculation among the public.

But is there really such widespread electricity theft? If, as Nasir stated, "power companies can completely monitor abnormal power supply," how could illegal miners allegedly steal up to $700 million worth of electricity without being detected sooner?

One Malaysian reader commented:

Indeed, there are many "electricity theft" mining activities, but the exact numbers are unclear. Personally, I feel that a large part of electricity theft comes from the pot calling the kettle black, and putting all the electricity theft blame on a more "controversial" cryptocurrency makes it easier to explain.