Crypto miners stole $723M worth of electricity in Malaysia since 2018: report
According to Malaysia's Deputy Minister of Energy and Water, illegal crypto mining operators in Malaysia stole an estimated $723 million worth of electricity between 2018 and 2023.
Energy Transition and Water Transition Deputy Minister Akmal Nasrullah Mohd Nasir revealed that 2,022 seized items worth about $467,000 were removed, including bitcoin mining machines and electrical equipment, according to a Malay Mail report.
These illegal mining operations are not only affecting Tenga National Berhad, which is under the control of the Malaysian government, but also affecting the local residents in the affected areas.
Electricity thieves typically avoid registering with the relevant authority and find ways to bypass electricity meters or divert electricity from power lines.
“People who spend cryptocurrency believe that electricity theft happens because they believe that this activity cannot be detected due to the lack of meters in their premises,” Nasser said.
“However, energy supply companies have different methods to detect unusual energy consumption in the area,” Malaysian authorities added, explaining how they were able to seize more than 2,000 items in an October 2022 operation.
Malaysia University of Technology MARA said in December 2022 that mining crypto is not illegal in the country but it is an act of stealing mine electricity.
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Malaysian authorities have been arresting cryptocurrency miners since at least August 2019, a practice Nasser said was carried out under the country's criminal justice laws.
Some of the machines were removed by steam roller crushing.
In addition to promoting Malaysia's renewable energy sources, Nasser has made efforts to curb illegal mining a top priority for the ministry.
Malaysia also operates unregistered exchanges.
Last year, in May, the Malaysian Securities Commission ordered cryptocurrency exchange Huobi Global to shut down its operations in Malaysia for failing to register its trading services.
HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology and Torum International are the only registered cryptocurrency trading platforms in Malaysia.
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