Losses from illegal mining in Malaysia exceed $1 billion
Date: 2025-11-19 Author: Henry Casey Categories: IN WORLD
Over the past few years, the problem of illegal mining in Malaysia has become a serious challenge for government agencies. According to the country's Ministry of Energy, 13,827 cases of illegally connecting mining equipment to the power grid were recorded from the beginning of 2020 to August of this year. As reported by the South China Morning Post, the total damage from such activities has exceeded $1 billion.
The national power company, Tenaga Nasional Berhad (TNB), has been hit the hardest. The ministry estimates that TNB's losses have reached 4.6 billion ringgit, equivalent to approximately $1.1 billion. Ministry officials emphasize that the company is actively cooperating with government agencies to identify violators and prevent further resource theft.
Special operations are coordinated by energy companies, police, and other regulatory agencies. During the raids, equipment bypassing meters is seized, and the farms are disconnected from the grid. Tampering with meters and creating hidden power lines is considered a criminal offense in Malaysia, even though cryptocurrency mining itself is not formally regulated by law.
The problem intensified after 2021, when China imposed a strict ban on cryptocurrency mining. Many miners relocated their facilities to countries in Southeast Asia, where controls are less stringent. One of the most high-profile cases was the destruction of confiscated equipment worth approximately $1.25 million in 2021. At that time, 1,069 devices belonging to illegal farms were bulldozed.
According to authorities, the fight against electricity theft was declared a priority back in 2024. By that time, cumulative losses had already exceeded $700 million, and the problem continued to grow rapidly.
Similar trends are observed in Russia. A package of bills is currently being drafted to tighten penalties for violating mining regulations. A separate criminal statute is planned for the theft of electricity for the purpose of cryptocurrency mining. Deputies emphasize that mining farms are increasingly moving into the "gray zone" and require more stringent regulation.
In 2024 alone, Rosseti identified 130 cases of illegal connections to power grids by miners. As a result of these inspections, over 40 criminal cases were opened, with total damages exceeding 1.3 billion rubles.
Given the growing risks and financial losses, authorities in various countries are tightening controls on mining, seeking to restrict the activities of illegal farmers and minimize damage to energy companies.
